AN ACT relating to appropriations measures providing funding and establishing conditions for the operations, maintenance, support, and functioning of the government of the Commonwealth of Kentucky and its various officers, cabinets, departments, boards, commissions, institutions, subdivisions, agencies, and other state-supported activities.

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AN ACT relating to appropriations measures providing funding and establishing 1
conditions for the operations, maintenance, support, and functioning of the government of 2
the Commonwealth of Kentucky and its various officers, cabinets, departments, boards, 3
commissions, institutions, subdivisions, agencies, and other state-supported activities. 4
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 5
Section 1. The State/Executive Branch Budget is as follows: 6
PART I 7
OPERATING BUDGET 8
(1) Funds Appropriations: There is appropriated out of the General Fund, Road 9
Fund, Restricted Funds accounts, Federal Funds accounts, or Bond Funds accounts for 10
the fiscal year beginning July 1, 2025, and ending June 30, 2026, for the fiscal year 11
beginning July 1, 2026, and ending June 30, 2027, and for the fiscal year beginning July 12
1, 2027, and ending June 30, 2028, the following discrete sums, or so much thereof as 13
may be necessary. Appropriated funds are included pursuant to KRS 48.700 and 48.710. 14
Each appropriation is made by source of respective fund or funds accounts. 15
Appropriations for the following officers, cabinets, departments, boards, commissions, 16
institutions, subdivisions, agencies, and budget units of the state government, and any and 17
all other activities of the gove rnment of the Commonwealth, are subject to the provisions 18
of Chapters 12, 42, 45, and 48 of the Kentucky Revised Statutes and compliance with the 19
conditions and procedures set forth in this Act. 20
(2) Tobacco Settlement Funds: Appropriations identified as Ge neral Fund 21
(Tobacco) in Part I, Operating Budget, of this Act are representative of the amounts 22
provided in Part X, Phase I Tobacco Settlement, of this Act and are not to be appropriated 23
in duplication. 24
A. GENERAL GOVERNMENT 25
Budget Units 26
1. OFFICE OF THE GOVERNOR 27
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2026-27 2027-28 1
General Fund 6,688,100 6,607,200 2
Restricted Funds 287,900 287,800 3
TOTAL 6,976,000 6,895,000 4
(1) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided 5
on the base salary of the Lieut enant Governor shall be the same as that provided for 6
eligible state employees in Part IV of this Act. 7
Notwithstanding KRS 64.480(4), the increment provided on the base salary of the 8
Governor shall be the same as that provided for eligible state employees in Part IV of this 9
Act. 10
2. OFFICE OF STATE BUDGET DIRECTOR 11
2026-27 2027-28 12
General Fund 3,782,900 3,749,000 13
Restricted Funds 384,000 384,000 14
Federal Funds 62,000 -0- 15
TOTAL 4,228,900 4,133,000 16
(1) Participation in Transparent Governin g - Full Disclosure of Inmate 17
Population Forecasts and Related Materials: The Office of State Budget Director shall 18
provide the methodology, assumptions, data, and all other related materials used to 19
project biennial offender population forecasts conducted by the Office of State Budget 20
Director, the Kentucky Department of Corrections, and any consulting firms, to the 21
Interim Joint Committee on Appropriations and Revenue by October 1, 2027. This 22
submission shall include but not be limited to the projected st ate, county, and community 23
offender populations for the 2028 -2030 fiscal biennium and must coincide with the 24
budgeted amount for these populations. This submission shall clearly divulge the 25
methodology and reasoning behind the budgeted and projected offend er population in a 26
commitment to participate in transparent governing. 27
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3. HOMELAND SECURITY 1
2026-27 2027-28 2
General Fund 5,632,600 5,626,200 3
Restricted Funds 4,411,800 4,360,100 4
Federal Funds 9,955,400 9,983,700 5
TOTAL 19,999,800 19,970,000 6
(1) Next Generation 9 -1-1 (NG9-1-1) Services: Included in the above General 7
Fund appropriation is a one -time allocation of $5,000,000 in each fiscal year to complete 8
the statewide deployment of NG9 -1-1 services. The appropriation shall be used to 9
implement a NG9 -1-1 system that is compliant with the National Emergency Number 10
Association’s i3 Standard. 11
(2) School Safety: Included in the above appropriations is sufficient funding to 12
implement and carry out the provisions of 2024 Ky. Acts ch. 165. 13
4. VETERANS' AFFAIRS 14
2026-27 2027-28 15
General Fund 37,487,300 38,976,800 16
Restricted Funds 107,228,800 108,377,900 17
Federal Funds 300,000 300,000 18
TOTAL 145,016,100 147,654,700 19
(1) Weekend and Holiday Premium Pay Incentive: The Kentucky Veterans 20
Centers are authorized to continue the weekend and holiday premium pay incentive for 21
the 2026-2028 fiscal biennium. 22
(2) Congressional Medal of Honor Recipients - Travel and Per Diem: The 23
Commissioner of the Department of Veterans' Affairs may approve travel and per diem 24
expenses incurred when Kentucky residents who have been awarded the Congressional 25
Medal of Honor attend veterans, military, or memorial events in the Commonwealth of 26
Kentucky. 27
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(3) State Veterans Nursing Home: All state veterans' nursing homes must meet 1
a combined 80 percent bed occupancy rate before any future projects will be considered. 2
Once the 80 percent threshold has been met, it is the intent of the General Assembly that 3
any future beds allocated from the United States Department of Veterans Affairs or 4
reallocated from the Kentucky Department of Veterans' Affairs be dedicated to a state 5
veterans nursing home in Magoffin County to serve that area. 6
(4) Brain Injury Associatio n of America, Kentucky Chapter and the 7
Epilepsy Foundation of Kentuckiana Funding: Included in the above General Fund 8
appropriation is $93,700 in each fiscal year for grants to the Brain Injury Association of 9
America, Kentucky Chapter and $93,700 in each f iscal year for grants to the Epilepsy 10
Foundation of Kentuckiana to be used solely for the purpose of working with veterans 11
who have experienced brain trauma and their families. 12
(5) Veterans' Service Organization Funding: Included in the above General 13
Fund appropriation is $187,500 in each fiscal year for grants to Veterans' Service 14
Organization programs. 15
(6) Kentucky Homeless Veterans Program: Included in the above General 16
Fund appropriation is $300,000 in each fiscal year to provide emergency financial 17
assistance to Kentucky's homeless veterans. 18
(7) Bowling Green Veterans Center: Included in the above appropriation is 19
$5,616,800 in General Fund and $10,000,000 in Restricted Funds in each fiscal year to 20
support the staffing and operations of the Bowling Green Veterans Center. 21
(8) Thomson-Hood Veterans Center Additional Positions: Included in the 22
above Restricted Funds appropriation is $5,110,800 in fiscal year 2026 -2027 and 23
$5,488,400 in fiscal year 2027 -2028 for additional positions at the Thomson -Hood 24
Veterans Center. 25
(9) Western Kentucky Veterans Center Additional Positions: Included in the 26
above Restricted Funds appropriation is $6,397,400 in fiscal year 2026 -2027 and 27
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$6,778,600 in fiscal year 2027 -2028 for additional positions at the Western Kentucky 1
Veterans Center. 2
(10) HBOT for Kentucky Vets: Notwithstanding KRS 45.229, any unexpended 3
funds authorized in 2024 Ky. Acts ch. 173, sec. 1, (3) to HBOT for Kentucky Vets shall 4
not lapse and shall carry forward. 5
5. KENTUCKY INFRASTRUCTURE AUTHORITY 6
2026-27 2027-28 7
General Fund 1,830,100 1,768,800 8
Restricted Funds 8,345,500 10,862,200 9
Federal Funds 440,051,600 288,578,900 10
TOTAL 450,227,200 301,209,900 11
(1) Debt Service: Included in the above Restricted Funds appropriation is 12
$2,486,000 in fi scal year 2026 -2027 and $4,972,000 in fiscal year 2027 -2028 for new 13
debt service to support new bonds as set forth in Part II, Capital Projects Budget, of this 14
Act. 15
(2) Rural Infrastructure Improvement Fund: Notwithstanding KRS Chapter 16
45A or any statute t o the contrary, any contract executed by the Kentucky Infrastructure 17
Authority from the Rural Infrastructure Improvement Fund prior to June 30, 2026, shall 18
remain in effect for the purpose of paying claims; however, no additional contracts may 19
be entered into after this date. Notwithstanding 224A.1123(3)(c), unobligated funds as of 20
June 30, 2026, or any portion of General Fund not expended for this purpose shall lapse 21
to the Budget Reserve Trust Fund Account (KRS 48.705). 22
The Kentucky Infrastructure Authori ty shall provide a report detailing Rural 23
Infrastructure Improvement Fund reimbursements to the Interim Joint Committee on 24
Appropriations and Revenue by October 1, 2026. This report shall include but not be 25
limited to a list of grant recipients, the amount of each reimbursement, the status of 26
project completion, and an explanation of any delays or challenges experienced as part of 27
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the reimbursement process. 1
(3) Area Development District Reporting and Compensation: Each area 2
development district shall submit a comprehensive financial report to the Kentucky 3
Infrastructure Authority by September 1, 2026, detailing all expenditures made during the 4
preceding fiscal year to satisfy the requirements of any contract or agreement between the 5
district and the authorit y. This report shall include details concerning contracted water 6
management planning services and the maintenance of the Water Resource Information 7
System (WRIS) and other relevant contracted services. 8
The Kentucky Infrastructure Authority shall submit a report to the Interim Joint 9
Committee on Appropriations and Revenue by November 1, 2026. The report shall 10
include information received from the area development districts as well as financial 11
information detailing funding distributed to the area developmen t districts for WRIS and 12
other relevant contracted services. 13
6. MILITARY AFFAIRS 14
2026-27 2027-28 15
General Fund 29,252,300 28,669,500 16
Restricted Funds 21,449,500 21,566,600 17
Federal Funds 88,307,100 88,593,500 18
TOTAL 139,008,900 138,829,600 19
(1) Kentucky National Guard: Included in the above General Fund 20
appropriation is $4,500,000 in each fiscal year to be expended, subject to the conditions 21
and procedures provided in this Act, which are required as a result of the Gov ernor's 22
declaration of emergency pursuant to KRS Chapter 39A, and the Governor's call of the 23
Kentucky National Guard to active duty when an emergency or exigent situation has been 24
declared to exist by the Governor. Notwithstanding KRS 45.229, any portion o f the 25
$4,500,000 not expended shall lapse to the Budget Reserve Trust Fund Account (KRS 26
48.705) at the end of each fiscal year. In the event that costs for Governor -declared 27
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emergencies or the Governor’s call of the Kentucky National Guard for emergencies or 1
exigent situations exceed $4,500,000 annually, up to $100,000,000 for the 2026 -2028 2
fiscal biennium shall be deemed necessary government expenses and shall be paid from 3
the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund 4
Account (KRS 48.705). 5
(2) Disaster or Emergency Aid Funds: Subject to the conditions and procedures 6
in this Act, in the event of a presidentially declared disaster or emergency, the 7
Department of Military Affairs may request from the Finance and Administration 8
Cabinet, as a necessary government expense, up to $25,000,000 in each fiscal year from 9
the General Fund to be used as required to match federal aid for which the state would be 10
eligible. These necessary funds shall be made available from the General Fund S urplus 11
Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705). 12
All moneys reimbursed to the state by the Federal Emergency Management Agency 13
(FEMA) for eligible disaster -related expenditures shall be deposited into the Budget 14
Reserve Trust Fund Account (KRS 48.705). 15
The Department of Military Affairs shall provide a comprehensive list of 16
anticipated FEMA reimbursements to counties eligible for disaster -related expenditures 17
to the Interim Joint Committee on Appropriations and Revenue by June 1, 2026. 18
7. COMMISSION ON HUMAN RIGHTS 19
2026-27 2027-28 20
General Fund 1,999,200 1,985,900 21
Restricted Funds 10,000 10,000 22
Federal Funds 445,000 445,000 23
TOTAL 2,454,200 2,440,900 24
8. COMMISSION ON WOMEN 25
(1) Redistribution of Resources: Notwithstanding KRS 12.020, 12.023, 14.260, 26
15A.190, 214.554, and 344.510 to 344.530, no General Fund appropriation is provided 27
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for the Commission on Women in order to provide additional funding for Domestic 1
Violence Shelters, Rape Crisis Centers, and Children's Advocacy Centers. 2
9. DEPARTMENT FOR LOCAL GOVERNMENT 3
2026-27 2027-28 4
General Fund 10,227,100 12,001,300 5
Restricted Funds 4,404,700 2,346,300 6
Federal Funds 242,402,800 242,437,200 7
TOTAL 257,034,600 256,784,800 8
(1) Appalachian Regional Commission Matching Funds: Included in the 9
above General Fund appropriation is $240,000 in fiscal year 2026 -2027 and $232,500 in 10
fiscal year 2027 -2028 for Area Development Districts to match increased Appalachian 11
Regional Commission grants. 12
(2) Kentucky Mountain Regional Recreation Authority: Included in the above 13
Restricted Funds appropriation is $1,500,000 in each fiscal year for the Kentucky 14
Mountain Regional Recreation Authority. Restricted Funds shall be transferred from the 15
Tourism, Arts and Heritage Cabinet from taxes collected pursuant to KRS 142.400(2). 16
(3) Area Development District Funding: Included in the above General Fund 17
appropriation is $3,824,700 in fiscal year 2026 -2027 and $3,705,200 in fiscal year 2027 -18
2028 for the Joint Funding Administration Program in support of the area development 19
districts. 20
(4) Mary Kendall Homes and Gateway Juvenile Diversion: Included in the 21
above General Fund appropriation is $247,500 in fiscal year 2026 -2027 and $239,800 in 22
fiscal year 2027-2028 for the support of the Mary Kendall Homes and $247,500 in fiscal 23
year 20 26-2027 and $239,800 in fiscal year 2027 -2028 for the support of Gateway 24
Juvenile Diversion. 25
(5) Local Government Operations: Notwithstanding KRS 65A.020(5)(a), 26
included in the above Restricted Funds appropriation is $2,000,000 in fiscal year 2026 -27
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2027 to support the operations of the Department for Local Government. 1
(6) Delta Regional Authority Matching Funds: Included in the above General 2
Fund appropriation is $240,000 in fiscal year 2026 -2027 and $232,500 in fiscal year 3
2027-2028 for area development dis tricts to match increased Delta Regional Authority 4
grants. 5
10. LOCAL GOVERNMENT ECONOMIC ASSISTANCE FUND 6
2026-27 2027-28 7
General Fund 27,926,700 25,211,600 8
(1) Allocation of the Local Government Economic Assistance Fund: 9
Notwithstanding KRS 42.470(1)(a), 70 percent of moneys in the Local Government 10
Economic Assistance Fund shall be distributed to each coal producing county on the 11
basis of the ratio of coal severe d in each respective county to the coal severed statewide. 12
Notwithstanding KRS 42.470(1)(c), no allocation shall be distributed to non -coal 13
producing counties. 14
(2) Coal Haul Road System: Notwithstanding KRS 42.455(2), no funds 15
appropriated to the Local Gov ernment Economic Assistance Fund are required to be 16
spent on the coal haul road system. 17
(3) Jefferson County Mineral Severance: Notwithstanding KRS 42.450 to 18
42.495, all funds distributed to Jefferson County in accordance with KRS 42.470(2)(a) 19
shall be used by the Jefferson County Fiscal Court for Thrive By Five Louisville. 20
11. LOCAL GOVERNMENT ECONOMIC DEVELOPMENT FUND 21
2026-27 2027-28 22
General Fund 20,494,800 15,059,100 23
(1) Coal Severance Tax Transfers: Notwithstanding KRS 42.450 to 42.495, 70 24
percent of the severance and processing taxes on coal collected annually, except items 25
described in subsection (2) below, shall be transferred to the Local Government 26
Economic Development Fund. Notwithstanding KRS 42.450 to 42.495, 30 percent of the 27
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severance and processing taxes on coal collected annually, except items described in 1
subsection (2) below, shall be transferred to the Local Government Economic Assistance 2
Fund. Transfers to the Local Government Economic Development Fund and the Local 3
Government Ec onomic Assistance Fund shall be made quarterly in July, October, 4
January, and April based upon actual revenues from the prior quarter. 5
(2) Coal Severance Tax Collections Calculations and Transfers: The above 6
appropriations from the General Fund are based o n the official estimate presented by the 7
Office of State Budget Director. Notwithstanding KRS 42.450 to 42.495, coal severance 8
tax collections during the 2026 -2028 fiscal biennium shall first be allocated to the 9
following programs or purposes on a quarterly basis: 10
(a) Department for Local Government: An annual appropriation of $669,700 in 11
each fiscal year is appropriated as General Fund moneys to the Department for Local 12
Government budget unit for Local Government Economic Development Fund and Local 13
Government Economic Assistance Fund project administration costs; 14
(b) Debt Service: An annual appropriation of 100 percent of the debt service 15
necessary to support bonds authorized in 2003 Ky. Acts ch. 156, 2005 Ky. Acts ch. 173, 16
2006 Ky. Acts ch. 252, 2008 Ky. Acts ch. 127, and 2010 (1st Extra. Sess.) Ky. Acts ch. 1, 17
in the amount of $17,747,700 in fiscal year 2026 -2027 and $16,786,700 in fiscal year 18
2027-2028 is appropriated for that purpose; 19
(c) Osteopathic Medicine Scholarship Program: Notwithstanding KRS 20
164.7891(11)(b), no transfers shall be made to the Osteopathic Medicine Scholarship 21
Program within the Kentucky Higher Education Assistance Authority; 22
(d) Pharmacy Scholarships: Notwithstanding KRS 164.7890(11)(c), no transfers 23
shall be made to the Coal County Pharmacy Scholarship Program within the Kentucky 24
Higher Education Assistance Authority; and 25
(e) Kentucky Coal Fields Endowment Authority: Notwithstanding KRS 26
42.453(3), no transfers shall be made to the Kentucky Coal Field Endowment Authority. 27
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(3) Allocation of the Local Government Economic Development Fund: 1
Notwithstanding KRS 42.4592(1), 50 percent of Local Government Economic 2
Development Fund moneys shall be allocated in accordance with KRS 42.4592(1)(a), and 3
50 percent shall be allocated in accordance with KRS 42.4592(1)(b). 4
(4) Use of the Local Government Economic Development Fund: 5
Notwithstanding KRS 42.450 to 42.495, all funds appropriated to Local Government 6
Economic Development Fund Single-County Accounts shall be allocated to projects with 7
the co ncurrence of the respective county judge/executive, state senator(s), and state 8
representative(s) of each county. If concurrence is not achieved, the fiscal court of each 9
county may apply for grants through the Department for Local Government pursuant to 10
KRS 42.4588. 11
12. AREA DEVELOPMENT FUND 12
(1) Area Development Fund: Notwithstanding KRS 42.345 to 42.370 and 13
48.185, or any statute to the contrary, no funding is provided for the Area Development 14
Fund. 15
(2) Area Development District Flexibility: Notwithstanding KRS 42.350(2) and 16
provided that sufficient funds are maintained in the Joint Funding Agreement program to 17
meet the match requirements for the Economic Development Administration grants, 18
Community Development Block Grants, Appalachian Regional Commission grants, or 19
any federal program where the Joint Funding Agreement funds are utilized to meet 20
nonfederal match requirements, an area development district with authorization from its 21
Board of Directors may request approval to transfer funding between the Are a 22
Development Fund and the Joint Funding Agreement Program from the Commissioner of 23
the Department for Local Government. 24
13. REGIONAL DEVELOPMENT AGENCY ASSISTANCE FUND 25
2026-27 2027-28 26
Restricted Funds 6,000,000 6,000,000 27
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14. EXECUTIVE BRANCH ETHICS COMMISSION 1
2026-27 2027-28 2
General Fund 667,200 661,500 3
Restricted Funds 799,100 795,300 4
TOTAL 1,466,300 1,456,800 5
(1) Use of Restricted Funds: All penalties collected or received by the Executive 6
Branch Ethics Commission shall be deposited in the State Treasury and credited to a trust 7
and agency fund account to the credit of the Commission to be used by the Commission 8
for the cost of conducting administrative hearings pursuant to KRS Chapter 13B. 9
Notwithstanding KRS 45.229, these funds shall not lapse and shall carry forward. 10
15. SECRETARY OF STATE 11
2026-27 2027-28 12
Restricted Funds 6,669,600 6,758,200 13
(1) Use of Restricted Funds: Notwithstanding KRS 14.140(1) and (3), the above 14
Restricted Funds may be used for the continuation of current activities within the Office 15
of the Secretary of State. 16
(2) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided 17
on the base salary of the Secre tary of State shall be the same as that provided for eligible 18
state employees in Part IV of this Act. 19
16. BOARD OF ELECTIONS 20
2026-27 2027-28 21
General Fund 7,710,600 7,543,100 22
Restricted Funds 111,800 106,700 23
Federal Funds 1,829,800 1,829,800 24
TOTAL 9,652,200 9,479,600 25
(1) Cost of Elections: Up to $100,000 of costs associated with special elections, 26
KRS 117.345(2) costs associated with additional precincts with a voting machine, KRS 27
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117.343 costs for additional registered voters, and KRS 116.145 costs for additional new 1
registered voters shall be deemed a necessary government expense and shall be paid from 2
the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund 3
Account (KRS 48.705). Any reimbursements authorized as a necessary government 4
expense according to the above provisions shall be at the same rates as those established 5
by the State Board of Elections. 6
17. REGISTRY OF ELECTION FINANCE 7
2026-27 2027-28 8
General Fund 1,811,300 1,845,600 9
18. ATTORNEY GENERAL 10
2026-27 2027-28 11
General Fund (Tobacco) 150,000 150,000 12
General Fund 47,464,000 44,874,100 13
Restricted Funds 82,805,700 82,464,900 14
Federal Funds 66,540,000 63,655,400 15
TOTAL 196,959,700 191,144,400 16
(1) State Enforcement: Notwithstanding KRS 248.654 and 248.703(4), included 17
in the above General Fund (Tobacco) appropriation is $150,000 in each fiscal year for the 18
state’s diligent enforcement of noncompliant nonparticipating manufacturers. 19
(2) Expert Witnesses: In addition to such f unds as may be appropriated, the 20
Office of the Attorney General and the Unified Prosecutorial System, on behalf of the 21
Commonwealth's Attorneys, may request from the Finance and Administration Cabinet, 22
as a necessary government expense, such funds as may be necessary for expert witnesses. 23
Upon justification of the request, the Finance and Administration Cabinet shall provide 24
up to $3,000,000 for the 2026 -2028 fiscal biennium for this purpose to the Office of the 25
Attorney General and the Unified Prosecutoria l System from the General Fund Surplus 26
Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705). 27
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Without charge, the Department of Insurance shall provide the Office of the Attorney 1
General any available information to assist in the preparation of a rate hearing pursuant to 2
KRS 304.17A -095. Expenditures under this subsection shall be reported to the Interim 3
Joint Committee on Appropriations and Revenue by August 1 of each year. 4
(3) Annual and Sick Leave Service Credit: Notwithstanding any statutory or 5
regulatory restrictions to the contrary, any former employee of the Unified Prosecutorial 6
System who has been appointed to a permanent full -time position under KRS Chapter 7
18A shall be credited annual and sick leave based on service credited u nder the Kentucky 8
Retirement Systems solely for the purpose of computation of sick and annual leave. This 9
provision shall only apply to any new appointment or current employee as of July 1, 10
1998. 11
(4) Operations of the Office of the Attorney General: Notwithstanding KRS 12
367.478(2), 367.805(3), and 367.905(5), funds may be expended in support of the 13
operations of the Office of the Attorney General. 14
(5) Legal Services Contracts: The Office of the Attorney General may present 15
proposals to state agencies specify ing legal work that is presently accomplished through 16
personal service contracts that indicate the Office of the Attorney General's capacity to 17
perform the work at a lesser cost. State agencies may agree to make arrangements with 18
the Office of the Attorney General to perform the legal work and compensate the Office 19
of the Attorney General for the legal services. 20
(6) Civil Action Representation: To ensure adequate representation of the 21
interest of the Commonwealth and to protect the financial condition of th e Kentucky 22
Retirement Systems, it has been determined that it is necessary to allow the Attorney 23
General appropriate authority to engage private lawyers as co -counsel in Franklin Circuit 24
Court Civil Action Nos. 17 -CI-01348 and 20 -CI-00590. Due to the highl y complex and 25
specialized nature of that litigation, KRS Chapter 45A, et seq. would prevent the 26
Attorney General from engaging counsel of his choice. Accordingly, to protect the 27
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interest of the Commonwealth, and notwithstanding the requirements of KRS Chap ter 1
45A, et seq., which are hereby waived in with respect to the Attorney General retaining 2
private lawyers to prosecute Civil Action Nos. 17 -CI-01348 and 20 -CI-00590, and any 3
other civil action regarding the same subject matter or seeking the same relief as Civil 4
Action Nos. 17 -CI-0138 and 20 -CI-00590, the Attorney General is vested with the 5
authority to hire and pay counsel of his choice on any contractual basis the Attorney 6
General deems advisable. 7
(7) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided 8
on the base salary of the Attorney General shall be the same as that provided for eligible 9
state employees in Part IV of this Act. 10
(8) Office of Medicaid Fraud and Abuse Control: Included in the above 11
appropriations is $1,278,700 in General Fund and $801,000 in Federal Funds in fiscal 12
year 2026-2027 and $1,193,700 in General Fund and $546,000 in Federal Funds in fiscal 13
year 2027-2028 to support the Office of Medicaid Fraud and Abus e Control. The Office 14
of the Attorney General shall submit an annual report beginning December 1, 2026, to the 15
Interim Joint Committee on Appropriations and Revenue. The report shall include the 16
number of reported fraud incidents, the types of fraud report ed, the number of reported 17
fraud incidents investigated by the office, the monetary amount involved in the fraudulent 18
activity, and the resolution of the reported fraud incidents. 19
(9) Administrative Hearings: Included in the above appropriations is 20
$3,241,200 in Restricted Funds and $1,939,700 in Federal Funds in each fiscal year to 21
support the cost of Administrative Hearings held by the Office of the Attorney General 22
for the Cabinet for Health and Family Services. The Attorney General shall bill the 23
Cabinet for Health and Family Services on a quarterly basis for the cost, not to exceed 24
$5,180,900 each fiscal year. 25
(10) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in 26
the above Restricted Funds appropriation is $4,653 in fiscal year 20 26-2027 and $4,746 27
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in fiscal year 2027-2028 for each participant for training incentive payments. 1
(11) Body Armor Grant Program: Included in the above Restricted Funds 2
appropriation is $10,000,000 in each fiscal year of the 2026 -2028 biennium for grants to 3
law enforcement and first responders for the purchase of body armor, duty weapons, 4
ammunition, electronic-control devices, and body -worn cameras. Notwithstanding KRS 5
15.430 and 15.470, excess Restricted Funds from the Department of Criminal Justice 6
Training shall be transferred to the Attorney General for this purpose. 7
(12) Child Support Services: Included in the above appropriation is $5,380,000 in 8
General Fund and $10,443,500 in Federal Funds in fiscal year 2026 -2027 and $3,880,000 9
in General Fund and $7 ,531,800 in Federal Funds in fiscal year 2027 -2028 to support 10
child support services. 11
(13) Create Digital Forensics Lab: Included in the above General Fund 12
appropriation is $905,100 in fiscal year 2026-2027 and $587,100 in fiscal year 2027-2028 13
to create a new computer forensics laboratory in Western Kentucky. 14
(14) Upgrade Communications Equipment: Included in the above Restricted 15
Funds appropriation is $569,000 in fiscal year 2026 -2027 to upgrade communications 16
equipment. Notwithstanding KRS 15.430 and 15. 470, excess Restricted Funds from the 17
Department of Criminal Justice Training shall be transferred to the Attorney General for 18
this purpose. 19
(15) Data Privacy Protections: Included in the above appropriations is sufficient 20
funding to implement and carry out the provisions of 2024 Ky. Acts ch. 72. 21
(16) Opioid Abatement Trust Fund Report: The General Assembly recognizes 22
the need for clear and coordinated planning to deliver effective and outcome driven 23
substance use disorder (SUD) treatment and recovery servi ces and the opportunities to 24
achieve that goal through a strategic leveraging of Kentucky’s opioid abatement 25
settlement funds. Beginning November 1, 2026, the Office of the Attorney General shall 26
provide a quarterly report to the Legislative Research Commi ssion on the SUD activities 27
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undertaken with the opioid abatement settlement funds as authorized pursuant to KRS 1
15.291 to 15.295. The report shall include: 2
(a) Grants made by the Kentucky Opioid Abatement Advisory Commission 3
(commission) established in KRS 15.291 to subrecipients; 4
(b) Attestations made to the commission by any county, consolidated local 5
government, urban-county government, or city in receipt of opioid abatement settlement 6
funds as required under KRS 15.293(4)(c)2.a.; and 7
(c) Current and fut ure anticipated settlements realized as a result of ongoing 8
opioid litigation. 9
19. UNIFIED PROSECUTORIAL SYSTEM 10
(1) Prosecutors Advisory Council Administrative Functions: The Prosecutors 11
Advisory Council shall approve compensation for employees of the Unified Prosecutorial 12
System subject to the appropriations in this Act. 13
a. Commonwealth's Attorneys 14
2026-27 2027-28 15
General Fund 83,479,100 84,313,500 16
Restricted Funds 6,488,000 6,124,900 17
Federal Funds 359,200 359,200 18
TOTAL 90,326,300 90,797,600 19
(1) Salary Increment: Notwithstanding KRS 15.755, no increment shall be 20
provided on the base salary of the Commonwealth's Attorneys and staff. 21
(2) Rocket Docket Program: Included in the above General Fund appropriation 22
is $1,416,700 in each fiscal year to support the Rocket Docket Program. 23
(3) Salary Compensation Standardization: Included in the above General Fund 24
appropriation is $1,758,300 in fiscal year 2026 -2027 and $2,250,000 in fiscal year 2027 -25
2028 to support the Salary Compensation Standardization for Commonwealth’s 26
Attorneys. 27
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(4) Cloud Storage Cost: Included in the above R estricted Funds appropriation is 1
$794,000 in fiscal year 2026 -2027 and $409,000 in fiscal year 2027 -2028 for additional 2
cloud storage costs for Commonwealth's Attorneys. 3
b. County Attorneys 4
2026-27 2027-28 5
General Fund 86,248,300 87,108,900 6
Restricted Funds 901,200 905,800 7
Federal Funds 115,100 115,100 8
TOTAL 87,264,600 88,129,800 9
(1) Salary Increment: Notwithstanding KRS 15.765, no increment shall be 10
provided on the base salary of the County Attorneys and staff. 11
(2) County Attorney Retirement Costs: Notwithstanding KRS 61.5991, 12
included in the above General Fund appropriation is $1,590,600 in each fisca l year to 13
support each County Attorney's Office's share of the anticipated increase over each 14
County Attorney’s Office’s fiscal year 2019 -2020 baseline contribution as adjusted and 15
posted under the 2026 Budget Bills tile on the Legislative Research Commiss ion's 16
website. 17
(3) Rocket Docket Program: Included in the above General Fund appropriation 18
is $549,800 in each fiscal year to support the Rocket Docket Program. 19
(4) Salary Compensation Standardization: Included in the above General Fund 20
appropriation is $2,455,500 in fiscal year 2026 -2027 and $2,864,500 in fiscal year 2027 -21
2028 to support the Salary Compensation Standardization for County Attorneys. 22
TOTAL - UNIFIED PROSECUTORIAL SYSTEM 23
2026-27 2027-28 24
General Fund 169,727,400 171,422,400 25
Restricted Funds 7,389,200 7,030,700 26
Federal Funds 474,300 474,300 27
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TOTAL 177,590,900 178,927,400 1
20. TREASURY 2
2026-27 2027-28 3
General Fund 3,986,300 3,958,200 4
Restricted Funds 2,086,600 2,058,600 5
Federal Funds 1,206,700 1,206,700 6
TOTAL 7,279,600 7,223,500 7
(1) Unclaimed Property Fund: Included in the above Restricted Funds 8
appropriation is $2,086,600 in fiscal year 2026 -2027 and $2,058,600 in fiscal year 2027 -9
2028 from the Unclaimed Property Fund to provide funding for services per formed by 10
the Unclaimed Property Division of the Department of the Treasury. 11
(2) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided 12
on the base salary of the State Treasurer shall be the same as that provided for eligible 13
state employees in Part IV of this Act. 14
(3) Operations of the Department of the Treasury: Included in the above 15
General Fund appropriation is $300,000 in each fiscal year to support operations. 16
21. AGRICULTURE 17
2026-27 2027-28 18
General Fund (Tobacco) 35,426,900 32,739,700 19
General Fund 20,949,800 22,945,700 20
Restricted Funds 14,505,100 12,323,200 21
Federal Funds 12,173,200 12,173,200 22
TOTAL 83,055,000 80,181,800 23
(1) Use of Restricted Funds: Notwithstanding KRS 217.570, 217B.580, and 24
438.335, included in the above Restricted Funds appropriation is $2,000,000 in fiscal 25
year 2026-2027 to support the operations of the Department of Agriculture. 26
(2) Farms to Food Banks: Included in the above Gener al Fund (Tobacco) 27
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appropriation is $886,500 in fiscal year 2026-2027 and $819,300 in fiscal year 2027-2028 1
to support the Farms to Food Banks Program. The use of the moneys provided by this 2
appropriation shall be restricted to purchases of Kentucky -grown p roduce and protein 3
from Kentucky farmers who participate in the Farms to Food Banks Program. 4
(3) Kentucky Grape and Wine Council: Notwithstanding KRS 260.175(2), no 5
General Fund is provided for the Kentucky Small Farm Wineries Support Fund for use by 6
the Kentucky Grape and Wine Council. 7
(4) Counties Account: Notwithstanding KRS 248.703(1), included in the above 8
General Fund (Tobacco) appropriation is $11,777,900 in fiscal year 2026 -2027 and 9
$10,884,600 in fiscal year 2027 -2028 for the counties account as sp ecified in KRS 10
248.703(1)(a). 11
(5) State Account: Notwithstanding KRS 248.703(1), included in the above 12
General Fund (Tobacco) appropriation is $21,876,000 in fiscal year 2026 -2027 and 13
$20,216,500 in fiscal year 2027 -2028 for the state account as specified in KRS 14
248.703(1)(b). 15
(6) Tobacco Settlement Funds - Allocations: Notwithstanding KRS 248.711(2), 16
and from the allocation provided therein, counties that are allocated in excess of $20,000 17
annually may provide up to four percent of the individual county allocation, not to exceed 18
$15,000 annually, to the county council in that county for administrative costs. 19
(7) Kentucky Rural Mental Health, Suicide Prevention, and Farm Safety 20
Program: Included in the above General Fund (Tobacco) appropriation is $886,500 i n 21
fiscal year 2026 -2027 and $819,300 in fiscal year 2027 -2028 to support the Kentucky 22
Rural Mental Health, Suicide Prevention, and Farm Safety Program known as the Raising 23
Hope Initiative. The Department of Agriculture shall enhance awareness of the Nation al 24
Suicide Prevention Lifeline (988) in rural communities in Kentucky, improve access to 25
information on rural mental health issues and available treatment services, provide 26
outreach, and provide other necessary services to improve the mental health outcome s of 27
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rural communities in Kentucky. The Farm Safety and Rural Health Division, at its 1
discretion, may receive, accept, and solicit grants, contributions of money, property, 2
labor, or other things of value from any governmental agency, individual, nonprofit 3
organization, or private business to be used for the Kentucky Rural Mental Health, 4
Suicide Prevention, and Farm Safety Program. The Department of Agriculture may 5
utilize up to $150,000 of the appropriation amount in each fiscal year for program 6
administration purposes. The Department of Agriculture shall coordinate with the Raising 7
Hope Initiative to take custody of and maintain any intellectual property assets that were 8
created or developed by any state agency in connection with the Raising Hope Initiative. 9
The Department of Agriculture’s Office of Agricultural Marketing shall submit a 10
comprehensive annual report to the Interim Joint Committee on Appropriations and 11
Revenue and the Tobacco Settlement Agreement Fund Oversight Committee no later 12
than November 1 of each fiscal year. At a minimum, the report shall include: 13
(a) An accounting of all expenditures by fund source; 14
(b) A detailed accounting of all administrative expenses; 15
(c) The total amount expended on grants, loans, and benefits; 16
(d) A detailed accounting of all expenses not otherwise classified; 17
(e) Identification of any unexpended funds and the reason why the funds were not 18
expended; and 19
(f) An explanation of how all expenditures align with program objectives. 20
The Division Director of the Farm Safety and Rural Health Division and the 21
Executive Director of the Kentucky Office of Agricultural Marketing shall provide a 22
program update to the Tobacco Settlement Agreement Fund Oversight Committee in 23
November of each fiscal year. 24
(8) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in 25
the above Restricted Funds appropriation is $4,653 in fiscal year 2026 -2027 and $4,746 26
in fiscal year 2027-2028 for each participant for training incentive payments. 27
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(9) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided 1
on the base salary of the Commissioner of Agriculture shall be the same as that provided 2
for eligible state employees in Part IV of this Act. 3
(10) Agricultural Economic Development: In accordance with KRS Chapter 4
154, the Secretary of the Cabinet for Economic Development shall coordinate with and 5
seek guidance from the Commissioner of the Department of Agriculture in considering 6
any projects for economic incentives related to agricultural economic development, 7
agribusiness, or production facilities of sustainable aviation fuel. 8
(11) County Fair Grants: Included in the above General Fund appropriation is 9
$720,000 in fiscal year 2026 -2027 and $697,500 in fiscal year 2027 -2028 to support 10
capital improvement grants to the Local Agricultural Fair Aid Program. 11
22. AUDITOR OF PUBLIC ACCOUNTS 12
2026-27 2027-28 13
General Fund 11,074,100 10,874,200 14
Restricted Funds 29,365,500 29,563,700 15
TOTAL 40,439,600 40,437,900 16
(1) Audit Services Contracts: Notwithstanding KRS 45 .149, no state agency 17
shall enter into any contract with a nongovernmental entity for audit services unless the 18
Auditor of Public Accounts has declined in writing to perform the audit or has failed to 19
respond within 30 days of receipt of a written request for such services. The agency’s 20
request for audit services shall include a comprehensive statement of the scope and nature 21
of the proposed audit. 22
(2) Financial Audit Receipts: The Auditor of Public Accounts shall provide a 23
listing of fee receipts for all audits and special examinations, itemized by type, agency, or 24
unit of government, as well as billing methodology to the Interim Joint Committee on 25
Appropriations and Revenue by August 1 of each fiscal year. 26
(3) Salary Increment: Notwithstanding KRS 64.480(2 ), the increment provided 27
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on the base salary of the Auditor of Public Accounts shall be the same as that provided 1
for eligible state employees in Part IV of this Act. 2
(4) Ombudsman: Included in the above Restricted Funds appropriation is 3
$18,292,400 in each fiscal year to support the operation of the Commonwealth Office of 4
the Ombudsman within the Auditor of Public Accounts. The Auditor of Public Accounts 5
may bill the Cabinet for Health and Family Services for this amount on a prorated 6
monthly basis. 7
(5) Jefferson County Public Schools Audit: Notwithstanding KRS 45.229, any 8
portion of the General Fund appropriation balance from 2024 Ky. Acts ch. 175, Part I, A., 9
22., (9) shall not lapse and shall carry forward. 10
(6) Kentucky Communications Network Authority and Kentucky Wired 11
Audit: Notwithstanding KRS 45.229, the General Fund appropriation balance from 2025 12
Ky. Acts ch. 117 sec. 41 shall not lapse and shall carry forward. 13
(7) Artificial Intelligence Initiative: Included in the above Restricted Funds 14
appropriation is $639,500 in fiscal year 2026-2027 and $439,500 in fiscal year 2027-2028 15
as a one -time allocation to support the purchase of new artificial intelligence auditing 16
software. 17
(8) Audit Billings: Within a reasonable time after the Auditor of Public Accounts 18
has completed and distributed a report of a state entity audit, examination, investigation, 19
or any other action resulting in a report relating to a state entity, the Auditor of Public 20
Accounts shall bill the audited, examined, investigated, or acted upon state entity for the 21
Auditor's expenses incurred related to that audit, examination, investigation, or other 22
action, and a copy of the bill shall be forwarded to the Secretary of the Finance and 23
Administration Cabinet. If the state entity, within 60 days following receipt of said bill, 24
determines the charge to be excessive or otherwise improper, it shall submit its objection 25
to the Secretary of the Finance and Administration Cabinet and to the State Treasurer for 26
resolution of the controversy in accor dance with this subsection. If the amount billed has 27
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not been paid within 60 days from the date of billing, and no objection has been filed, the 1
Auditor shall notify the Secretary of the Finance and Administration Cabinet who shall 2
cause said amount to be paid. When an objection to the bill has been filed with the 3
Secretary of the Finance and Administration Cabinet and the State Treasurer, the amount 4
found to be equitable and just shall become payable immediately upon the entry of the 5
final decision. Any co ntroversy over the amount of the bill for the actual expenses 6
incurred shall be submitted by the state entity to the Secretary of the Finance and 7
Administration Cabinet and the State Treasurer for a decision as to the proper amount. In 8
the event these two arbitrators fail to agree, then the controversy shall be submitted to the 9
Attorney General, whose decision shall be final. 10
(9) School Board Audits: The Auditor of Public Accounts shall perform both 11
random and targeted audits of school district finances to ensure compliance with 12
Department of Education established policies, procedures, and Kentucky Revised 13
Statutes. Notwithstanding KRS 156.265(4), the actual expense of any audit shall be borne 14
by the district board of education. 15
23. PERSONNEL BOARD 16
2025-26 2026-27 2027-28 17
General Fund -0- 11,400 10,200 18
Restricted Funds 25,000 1,394,700 1,149,400 19
TOTAL 25,000 1,406,100 1,159,600 20
(1) Hearing Officer Hourly Rate: Included in the above Restricted Funds 21
appropriation is $80,000 in fiscal year 2026 -2027 and $50,000 in fiscal year 2027 -2028 22
to increase the hearing officer hourly rate from $125 to $200 per hour. 23
(2) Equipment Upgrade: Included in the above Restricted Funds appropriation 24
is $60,000 in fiscal year 2026 -2027 to upgrade the video and audio e quipment in the 25
hearing rooms. 26
(3) Case Management Software: Included in the above Restricted Funds 27
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appropriation is $25,000 in fiscal year 2025-2026, $100,000 in fiscal year 2026-2027, and 1
$50,000 in fiscal year 2027 -2028 to purchase a new case management system for the 2
Board’s operations. 3
(4) Soundproofing: Included in the above Restricted Funds appropriation is 4
$120,000 in fiscal year 2026 -2027 to purchase soundproofing for the boardroom and two 5
hearing rooms. 6
24. KENTUCKY PUBLIC PENSIONS AUTHORITY 7
2026-27 2027-28 8
Restricted Funds 128,315,500 51,426,200 9
(1) Kentucky Employees Retirement System Nonhazardous Pension Fund: 10
Pursuant to KRS 42.205, included in the above Restricted Funds appropriation is 11
$78,504,500 in fiscal year 2026 -2027, to be app lied to the unfunded pension liability of 12
the Kentucky Employees Retirement System Nonhazardous pension fund. 13
(2) Pension Administration System Modernization: Included in the above 14
Restricted Funds appropriation is $750,000 in fiscal year 2026 -2027 and $1, 500,000 in 15
fiscal year 2027-2028 to support the modernization of the pension administration system. 16
25. OCCUPATIONAL AND PROFESSIONAL BOARDS AND COMMISSIONS 17
a. Accountancy 18
2026-27 2027-28 19
Restricted Funds 738,700 749,900 20
b. Certification of Alcohol and Drug Counselors 21
2026-27 2027-28 22
Restricted Funds 405,400 405,400 23
c. Applied Behavior Analysis Licensing 24
2026-27 2027-28 25
Restricted Funds 70,800 70,800 26
d. Architects 27
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2026-27 2027-28 1
Restricted Funds 485,500 493,200 2
e. Certification for Professional Art Therapists 3
2026-27 2027-28 4
Restricted Funds 11,200 11,200 5
f. Barbering 6
2026-27 2027-28 7
Restricted Funds 510,900 519,200 8
g. Chiropractic Examiners 9
2026-27 2027-28 10
Restricted Funds 301,900 301,900 11
h. Dentistry 12
2026-27 2027-28 13
Restricted Funds 1,000,000 1,012,900 14
i. Licensed Diabetes Educators 15
2026-27 2027-28 16
Restricted Funds 29,300 29,300 17
j. Licensure and Certification for Dietitians and Nutritionists 18
2026-27 2027-28 19
Restricted Funds 94,100 94,100 20
k. Embalmers and Funeral Directors 21
2026-27 2027-28 22
Restricted Funds 642,300 652,000 23
l. Licensure for Professional Engineers and Land Surveyors 24
2026-27 2027-28 25
Restricted Funds 2,239,500 2,270,500 26
m. Certification of Fee-Based Pastoral Counselors 27
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2026-27 2027-28 1
Restricted Funds 3,600 3,600 2
n. Registration for Professional Geologists 3
2026-27 2027-28 4
Restricted Funds 109,000 109,000 5
o. Hairdressers and Cosmetologists 6
2026-27 2027-28 7
Restricted Funds 3,605,900 2,657,900 8
p. Specialists in Hearing Instruments 9
2026-27 2027-28 10
Restricted Funds 77,900 77,900 11
q. Interpreters for the Deaf and Hard of Hearing 12
2026-27 2027-28 13
Restricted Funds 51,800 51,800 14
r. Examiners and Registration of Landscape Architects 15
2026-27 2027-28 16
Restricted Funds 92,800 95,300 17
s. Licensure of Marriage and Family Therapists 18
2026-27 2027-28 19
Restricted Funds 141,300 141,300 20
t. Licensure for Massage Therapy 21
2026-27 2027-28 22
Restricted Funds 150,700 150,700 23
u. Medical Imaging and Radiation Therapy 24
2026-27 2027-28 25
Restricted Funds 512,500 521,000 26
v. Medical Licensure 27
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2026-27 2027-28 1
Restricted Funds 4,697,000 4,751,300 2
w. Nursing 3
2026-27 2027-28 4
Restricted Funds 10,879,800 11,069,400 5
x. Licensure for Nursing Home Administrators 6
2026-27 2027-28 7
Restricted Funds 101,100 101,100 8
y. Licensure for Occupational Therapy 9
2026-27 2027-28 10
Restricted Funds 241,600 241,600 11
z. Ophthalmic Dispensers 12
2026-27 2027-28 13
Restricted Funds 71,200 71,200 14
aa. Optometric Examiners 15
2026-27 2027-28 16
Restricted Funds 312,700 316,500 17
ab. Pharmacy 18
2026-27 2027-28 19
Restricted Funds 3,255,300 3,308,600 20
ac. Physical Therapy 21
2026-27 2027-28 22
Restricted Funds 753,500 766,100 23
ad. Podiatry 24
2026-27 2027-28 25
Restricted Funds 58,100 58,100 26
ae. Private Investigators 27
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2026-27 2027-28 1
Restricted Funds 113,700 113,700 2
af. Licensed Professional Counselors 3
2026-27 2027-28 4
Restricted Funds 460,800 460,800 5
ag. Prosthetics, Orthotics, and Pedorthics 6
2026-27 2027-28 7
Restricted Funds 46,300 46,300 8
ah. Emergency Medical Services 9
2026-27 2027-28 10
General Fund 2,652,800 2,684,600 11
Restricted Funds 3,055,100 3,057,800 12
Federal Funds 345,200 348,500 13
TOTAL 6,053,100 6,090,900 14
ai. Examiners of Psychology 15
2026-27 2027-28 16
Restricted Funds 431,000 431,000 17
aj. Respiratory Care 18
2026-27 2027-28 19
Restricted Funds 345,400 350,800 20
ak. Social Work 21
2026-27 2027-28 22
Restricted Funds 653,500 663,700 23
al. Speech-Language Pathology and Audiology 24
2026-27 2027-28 25
Restricted Funds 225,500 225,500 26
am. Veterinary Examiners 27
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2025-26 2026-27 2027-28 1
Restricted Funds 62,000 816,900 813,600 2
TOTAL - OCCUPATIONAL AND PROFESSIONAL BOARDS AND 3
COMMISSIONS 4
2025-26 2026-27 2027-28 5
General Fund -0- 2,652,800 2,684,600 6
Restricted Funds 62,000 37,793,600 37,266,000 7
Federal Funds -0- 345,200 348,500 8
TOTAL 62,000 40,791,600 40,299,100 9
26. KENTUCKY RIVER AUTHORITY 10
2026-27 2027-28 11
General Fund 394,300 389,900 12
Restricted Funds 6,076,400 5,951,500 13
Federal Funds 4,300 -0- 14
TOTAL 6,475,000 6,341,400 15
27. SCHOOL FACILITIES CONSTRUCTION COMMISSION 16
2026-27 2027-28 17
General Fund 104,962,400 107,195,800 18
(1) Debt Service: Included in the above General Fund appropriation is $983,000 19
in fiscal year 2026-2027 and $1,966,000 in fiscal year 2027 -2028 for new debt service to 20
support new bonds as set forth in Part II, Capital Projects Budget, of this Act. 21
(2) Additional Offers of Assistance: Notwithstanding KRS 157.611 to 157.665, 22
the School Facilities Construction Commission is authorized to make an additional 23
$40,000,000 in offers of assistance during the 2026 -2028 fiscal biennium in anticipation 24
of debt service availability during the 2028 -2030 fiscal bienni um. No bonded 25
indebtedness based on the above amount is to be incurred during the 2026 -2028 fiscal 26
biennium. 27
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(3) Use of Restricted Funds for Debt Service: Notwithstanding KRS 157.618, 1
Restricted Funds in the amount of $8,453,400 in fiscal year 2026 -2027 ar e hereby 2
transferred to the Debt Service Fund to pay debt service on previously issued bonds. 3
(4) Offers of Assistance Eligibility Requirements: Notwithstanding KRS 4
157.611 to 157.635 and 750 KAR 1:010, the School Facilities Construction Commission 5
shall not make an offer of assistance to any local school district during the 2026 -2028 6
fiscal biennium until the information required under Part I., C., 2., (9) of this Act has 7
been received. A local school district shall not be eligible for an offer of assistance during 8
the 2026-2028 fiscal biennium unless the district’s facilities have been evaluated in the 9
Kentucky Facilities Inventory and Classification System (KFICS). 10
28. TEACHERS' RETIREMENT SYSTEM 11
2026-27 2027-28 12
General Fund 1,225,339,000 1,277,624,600 13
Restricted Funds 21,915,700 23,008,100 14
TOTAL 1,247,254,700 1,300,632,700 15
(1) Dependent Subsidy for All Retirees under age 65: Pursuant to KRS 16
161.675(4), health insurance supplement payments made by the retirement system shall 17
not exceed the amount of the single coverage insurance premium. 18
(2) Retiree Health Insurance: Pursuant to KRS 161.550(2)(b) and 19
notwithstanding any statute to the contrary, included in the above General Fund 20
appropriation is $96,606,400 and excess state funding for ret iree health insurance in the 21
amount of $3,993,600 from fiscal years 2022 -2023, 2023-2024, and 2024 -2025 totaling 22
$100,600,000 in fiscal year 2026 -2027 and $112,400,000 in fiscal year 2027 -2028 to 23
support the state's contribution for the cost of retiree hea lth insurance for members not 24
eligible for Medicare who have retired on or after July 1, 2010. Notwithstanding KRS 25
161.675, the Teachers' Retirement System Board of Trustees shall provide health 26
insurance supplement payments towards the cost of the single coverage insurance 27
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premium based on age and years of service credit of eligible recipients of a retirement 1
allowance, the cost of which shall be paid from the Medical Insurance Fund. 2
Notwithstanding KRS 161.675, the Teachers' Retirement System Board of Tru stees shall 3
authorize eligible recipients of a retirement allowance from the Teachers' Retirement 4
System who are less than age 65 to be included in the state -sponsored health insurance 5
plan that is provided to active teachers and state employees under KRS 18A.225. 6
Notwithstanding KRS 161.675(4)(a), the contribution paid by retirees who are less than 7
age 65 who qualify for the maximum health insurance supplement payment for single 8
coverage shall be no more than the sum of (a) the employee contribution paid b y active 9
teachers and state employees for a similar plan, and (b) the standard Medicare Part B 10
premium as determined by the Centers for Medicare and Medicaid Services. 11
Notwithstanding KRS 161.675(4)(a), the contribution paid by retirees who are less than 12
age 65 who do not qualify for the maximum health insurance supplement payment for 13
single coverage shall be determined by the same graduated formula used by the Teachers' 14
Retirement System for Plan Year 2026. 15
(3) Medical Insurance Fund Employee Contributions : Notwithstanding KRS 16
161.540(1), the employee contribution to the Medical Insurance Fund shall not be 17
changed in each fiscal year. 18
(4) Sick Leave Liability Reporting: The Teachers' Retirement System shall 19
provide a report on the full actuarial cost of mem ber sick leave, including the total 20
actuarial liabilities of the sick leave and the total actuarial costs to annually finance the 21
sick leave as a percentage of payroll and in total dollars by fund source, to the Public 22
Pension Oversight Board no later than December 1, 2027. 23
(5) Actuarially Determined Employer Contribution: Included in the above 24
General Fund appropriation is $1,076,889,000 in fiscal year 2026 -2027 and 25
$1,160,459,000 in fiscal year 2027 -2028 to provide the full actuarially determined 26
employer contribution. The Teachers' Retirement System shall provide a report on the 27
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actuarially determined employer contribution to the Public Pension Oversight Board no 1
later than December 1, 2027. 2
(6) Update and Maintain Pathway System: Included in the above Restricted 3
Funds appropriation is $900,000 in fiscal year 2026 -2027 and $1,700,000 in fiscal year 4
2027-2028 to update and maintain the Pathway system. 5
(7) SEEK Employer Contribution Shortfall: Included in the above General 6
Fund approp riation is $47,220,600 in fiscal year 2026 -2027 for the deficit between 7
estimated SEEK employer match and the actual SEEK employer match required during 8
the 2024-2026 fiscal biennium. 9
(8) Legacy Benefits Costs: Included in the above General Fund appropriat ion is 10
$191,800 in fiscal year 2026 -2027 and $334,400 in fiscal year 2027 -2028 to provide 11
funds for actuarially determined increases in legacy benefit enhancements. 12
29. APPROPRIATIONS NOT OTHERWISE CLASSIFIED 13
2026-27 2027-28 14
General Fund 16,750,300 16,750,300 15
(1) Repayment of Awards or Judgments: Included in the above General Fund 16
appropriation is $245,200 in each fiscal year for the repayment of awards or judgments 17
made by the Office of Claims and Appeals against departme nts, boards, commissions, 18
and other agencies funded with appropriations out of the General Fund. However, awards 19
under $5,000 shall be paid from funds available for the operations of the agency. 20
(2) Guardian Ad Litem Fees: Included in the above General Fund appropriation 21
is $12,348,300 in each fiscal year for fees to be paid to each guardian ad litem appointed 22
by the court pursuant to KRS 26A.140(1)(a), 199.502(3)(b), 202B.210, 311.732(3)(c), 23
403.100, 403.727(2), 456.035(2), 620.100, 625.0405, 625.041, and 625.080. The fee shall 24
be fixed by the court and shall not exceed $500. 25
(3) Reissuance of Uncashed Checks: Included in the above General Fund 26
appropriation is $2,461,800 in each fiscal year to reissue checks written by the State 27
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Treasurer and not cashed within the statutory period pursuant to KRS 41.370. 1
(4) Police Officer, Firefighter, and Active Duty National Guard and Reserve 2
Survivor Benefits: Included in the above General Fund appropriation is $690,900 in 3
each fiscal year for payment of benefits for su rvivors of state and local police officers, 4
firefighters, and active duty National Guard and Reserve members pursuant to KRS 5
61.315 and for the cost of insurance premiums for firefighters pursuant to KRS 95A.070. 6
(5) Attorney General Expense: Included in t he above General Fund 7
appropriation is $370,700 in each fiscal year for expenses associated with representation 8
of the Commonwealth and payments for expert witnesses pursuant to KRS 12.215. 9
(6) Prior Year Claims: Included in the above General Fund appropri ation is 10
$253,000 in each fiscal year to allow the Finance and Administration Cabinet to pay any 11
valid expense incurred during the two preceding fiscal years pursuant to KRS 45.231. 12
(7) Involuntary Commitments: Included in the above General Fund 13
appropriation is $63,400 in each fiscal year to provide funding for legal representation for 14
persons requiring involuntary hospitalization pursuant to KRS 202B.210. 15
(8) Frankfort In Lieu of Taxes: Included in the above General Fund 16
appropriation is $200,000 in each fiscal year for payment to the City of Frankfort in lieu 17
of property taxes normally owed annually pursuant to KRS 45.021. 18
(9) Medical Malpractice Liability Insurance Reimbursement: Included in the 19
above General Fund appropriation is $77,900 in each fiscal year to reimburse clinics and 20
small, regional health care providers for medical malpractice insurance premiums 21
pursuant to KRS 304.40-075. 22
(10) Blanket Employee Bonds: Included in the above General Fund appropriation 23
is $39,100 in each fiscal year to cover damages the Commonwealth might incur as the 24
result of a criminal action by an employee when securing bonds. 25
(11) Funding Sources for Appropriations Not Otherwise Classified: Funds 26
required to pay the costs of items included within Appropriations Not Other wise 27
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Classified are appropriated. Any required expenditure over the above amounts up to 1
$8,249,700 in each fiscal year shall be paid first from the General Fund Surplus Account 2
(KRS 48.700), if available, or from any available balance in either the Judgmen ts budget 3
unit or the Budget Reserve Trust Fund Account (KRS 48.705), subject to the conditions 4
and procedures provided in this Act. 5
The above appropriation is for the payment of Attorney General Expense, Office of 6
Claims and Appeals awards, Guardian Ad Li tem, Prior Year Claims, Unredeemed 7
Checks Refunded, Involuntary Commitments - ICF/MR, Frankfort in Lieu of Taxes, 8
Frankfort Cemetery, Police Officer, Firefighter, and National Guard and Reserve 9
Survivor Benefits, Medical Malpractice Liability Insurance Rei mbursement, and Blanket 10
Employee Bonds. 11
30. JUDGMENTS 12
(1) Payment of Judgments and Carry Forward of General Fund 13
Appropriation Balance: Notwithstanding KRS 45A.275, the payment of judgments that 14
exceed the above appropriation, as may be rendered against the Commonwealth by courts 15
and orders of the State Personnel Board, where applicable, shall be subject to KRS 16
Chapter 45 and shall not be deemed a necessary governmental expense. Notwithstanding 17
KRS 45A.270(1), funds required to pay any award or judgment against any department or 18
agency of the state in excess of the above appropriation, shall be paid out of the funds 19
created or collected for the maintenance and operation of such department or agency and 20
otherwise paid pursuant to KRS 45A.270(2). Notwithstandi ng KRS 45.229, the General 21
Fund appropriation in fiscal year 2025 -2026 and fiscal year 2026 -2027 shall not lapse 22
and shall carry forward. 23
31. KENTUCKY COMMUNICATIONS NETWORK AUTHORITY 24
2026-27 2027-28 25
General Fund 40,886,900 40,931,900 26
Restricted Funds 10,254,100 10,254,100 27
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TOTAL 51,141,000 51,186,000 1
(1) Availability Payments: Included in the above General Fund appropriation is 2
$39,200,000 in fiscal year 2026 -2027 and $40,179,000 in fiscal year 2027 -2028 for 3
availability payments. 4
(2) Capital Project Reporting: On a quarterly basis, the Kentucky 5
Communications Network Authority shall submit a report detailing the following for 6
each capital project authorized: 7
(a) Project scope, including a definition of what project components are critical ; 8
costs related to each project component; information regarding which network location 9
node, core equipment site, or end -user location is impacted; project milestones; and any 10
changes or modifications from previous reports; 11
(b) Financial status, including how much has been spent of the authorization, cost 12
overruns and/or savings, and impact on the Authority’s operating budget; 13
(c) Project timeline detailing progress towards project milestones and project 14
completion status; and 15
(d) Procurement and contrac ts, including status of procurement activities 16
detailing contracts awarded and pending, and any changes to contract terms or conditions. 17
The Authority shall present this quarterly report to the Capital Projects and Bond 18
Oversight Committee. 19
TOTAL - GENERAL GOVERNMENT 20
2025-26 2026-27 2027-28 21
General Fund (Tobacco) -0- 35,576,900 32,889,700 22
General Fund -0- 1,799,708,900 1,849,367,500 23
Restricted Funds 87,000 502,004,800 424,351,500 24
Federal Funds -0- 864,097,400 710,026,200 25
TOTAL 87,000 3,201,388,000 3,016,634,900 26
B. ECONOMIC DEVELOPMENT CABINET 27
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Budget Unit 1
1. ECONOMIC DEVELOPMENT 2
2026-27 2027-28 3
General Fund 26,731,900 27,490,900 4
Restricted Funds 5,637,200 4,286,300 5
Federal Funds 436,000 401,000 6
TOTAL 32,805,100 32,178,200 7
(1) Funding for Commercialization and Innovation: Notwithstanding KRS 8
154.12-278, interest income earned on the balances in the H igh-Tech 9
Construction/Investment Pool and loan repayments received by the High -Tech 10
Construction/Investment Pool shall be used to support the Office of Entrepreneurship and 11
are appropriated in addition to amounts appropriated above. 12
(2) Lapse and Carry For ward of General Fund Appropriation Balance for 13
Bluegrass State Skills Corporation: Notwithstanding KRS 45.229, the General Fund 14
appropriation balance for Bluegrass State Skills Corporation training grants for fiscal 15
year 2025-2026 and fiscal year 2026 -2027 shall not lapse and shall carry forward. The 16
amount available to the Corporation for disbursement in each fiscal year shall be limited 17
to the unexpended training grant allotment balance at the end of each fiscal year 18
combined with the additional training grant allotment amounts in each fiscal year of the 19
2026-2028 fiscal biennium, less any disbursements. If the required disbursements exceed 20
the Bluegrass State Skills Corporation training grants allotment balance, notwithstanding 21
KRS 154.12-278, Restricted Funds may be expended for training grants. 22
(3) Science and Technology Program: Notwithstanding KRS 164.6011 to 23
164.6035 and any other statute to the contrary, the Cabinet for Economic Development 24
shall have the authority to carry out the provisions of KRS 164.6013 to 164.6035. 25
(4) Carry Forward of General Fund Appropriation Balance: Notwithstanding 26
KRS 45.229, the General Fund appropriation in fiscal year 2025 -2026 and fiscal year 27
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2026-2027 to the Cabinet for Economic Development, Science and Technology Pro gram, 1
shall not lapse and shall carry forward in the Cabinet for Economic Development. 2
(5) Executive Officers' Compensation: Notwithstanding KRS 154.10 -050(2), 3
any additional executive officers as described in KRS 154.10 -050(2) shall not be paid a 4
salary greater than the salary of the Governor of the Commonwealth. 5
(6) Training Grants: Included in the above General Fund appropriation is 6
$2,400,000 in fiscal year 2026 -2027 and $2,325,000 in fiscal year 2027 -2028 for the 7
Bluegrass State Skills Corporation to m ake training grants to support manufacturing -8
related investments. The Corporation shall utilize these funds for a manufacturer 9
designated by the United States Department of Commerce, United States Census Bureau 10
North American Industry Classification System code of 336111, 336112, 336120, or 11
336211 that employs at least 10,000 full -time persons at the same facility or at multiple 12
facilities located within the same county to help offset associated costs of retraining its 13
workforce. Notwithstanding KRS 45.229, the General Fund appropriation balance for 14
Bluegrass State Skills Corporation training grants for fiscal year 2025 -2026 and fiscal 15
year 2026-2027 shall not lapse and shall carry forward. 16
(7) Kentucky Product Development Initiative: Notwithstanding KRS 45. 229, 17
the balance of the General Fund appropriation authorized in 2022 Ky. Acts ch. 199, Part 18
I, B., 1., (12) shall not lapse and shall carry forward. 19
(8) KEDFA Forgivable Loan -Carry Forward of Appropriation Balance: 20
Notwithstanding KRS 45.229, the balance of the General Fund appropriation authorized 21
in 2022 Ky. Acts ch. 199, Part I, B., 1., (11) shall not lapse and shall carry forward. 22
(9) Agricultural Economic Development: In accordance with KRS Chapter 23
154, the Secretary of the Cabinet for Economic Develo pment shall coordinate with and 24
seek guidance from the Commissioner of the Department of Agriculture in considering 25
any projects for economic incentives related to agricultural economic development, 26
agribusiness, or production facilities of sustainable aviation fuel. 27
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(10) State Trade and Export Promotion: Included in the above Federal Funds 1
appropriation is $135,000 in fiscal year 2026-2027 and $100,000 in fiscal year 2027-2028 2
to expand the federal State Trade and Export Promotion (STEP) program. 3
(11) Certified Child Care Community Designation Program: Included in the 4
above appropriations is sufficient funding to implement and carry out the provisions of 5
2024 Ky. Acts ch. 88. 6
(12) Financial Assistance Program for Nuclear Energy -Related Projects: 7
Included in the above appropriations is sufficient funding to implement and carry out the 8
provisions of 2024 Ky. Acts ch. 169. 9
(13) Pilot Tax Increment Financing Program: Included in the above 10
appropriations is sufficient funding to implement and carry out the provisions of 2025 11
Ky. Acts ch. 98. 12
(14) Kentucky Film Office: Included in the above Restricted Funds appropriation 13
is $500,000 in each fiscal year to support staff a nd operational costs for the Kentucky 14
Film Office. Notwithstanding KRS 142.406, for fiscal year 2027 -2028, 2.5% of the 15
transient room tax collected pursuant to KRS 142.400 up to a maximum amount of 16
$500,000 shall be transferred to the Kentucky Film Office. 17
C. DEPARTMENT OF EDUCATION 18
Budget Units 19
1. SUPPORT EDUCATION EXCELLENCE IN KENTUCKY (SEEK) 20
PROGRAM 21
2026-27 2027-28 22
General Fund 3,533,921,800 3,565,170,200 23
(1) Common School Fund Earnings: Accumulated earnings for the Common 24
School Fund shall be transferred in each fiscal year to the SEEK Program. 25
(2) Allocation of SEEK Funds: Notwithstanding KRS 157.360(2)(c), the above 26
General Fund appropriation to the base SEEK Program is intended to provide a base 27
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guarantee of $4,626 per student in average d aily attendance in fiscal year 2026 -2027 and 1
$4,792 per student in average daily attendance in fiscal year 2027 -2028, as well as to 2
meet the other requirements of KRS 157.360. Notwithstanding KRS 157.360(2), each 3
district’s base funding level shall be adju sted for the number of students demonstrating 4
limited proficiency in English language skills, multiplied by 0.096. 5
Funds appropriated to the SEEK Program shall be allotted to school districts in 6
accordance with KRS 157.310 to 157.440, except that the total of the funds allotted shall 7
not exceed the appropriation for this purpose, except as provided in this Act. The total 8
appropriation for the SEEK Program shall be measured by, or construed as, estimates of 9
the state expenditures required by KRS 157.310 to 1 57.440. If the required expenditures 10
exceed these estimates, the Secretary of the Finance and Administration Cabinet, upon 11
the written request of the Commissioner of Education and with the approval of the 12
Governor, may increase the appropriation by such am ount as may be available and 13
necessary to meet, to the extent possible, the required expenditures under the cited 14
sections of the Kentucky Revised Statutes, but any increase of the total appropriation to 15
the SEEK Program is subject to Part III, General Provisions, of this Act and KRS Chapter 16
48. If funds appropriated to the SEEK Program are insufficient to provide the amount of 17
money required under KRS 157.310 to 157.440, allotments to local school districts may 18
be reduced in accordance with KRS 157.430. 19
(3) SEEK Lapse: Notwithstanding KRS 45.229, any General Fund amounts 20
appropriated to the SEEK Program that are not necessary to meet the requirements set 21
forth in KRS 157.310 to 157.440 in each fiscal year shall lapse to the Budget Reserve 22
Trust Fund Account (KRS 48.705). 23
(4) Base SEEK Allotments: Notwithstanding KRS 157.420(2), included in the 24
above General Fund appropriation is $2,043,023,100 in fiscal year 2026 -2027 and 25
$2,098,833,800 in fiscal year 2027 -2028 for the base SEEK Program as defined by KRS 26
157.360. Funds appropriated to the SEEK Program shall be allotted to school districts in 27
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accordance with KRS 157.310 to 157.440, except that the total of the funds allotted shall 1
not exceed the appropriation for this purpose, except as provided in this Act. 2
(5) Tier I Component: Included in the above General Fund appropriation is 3
$248,291,300 in fiscal year 2026-2027 and $237,494,100 in fiscal year 2027-2028 for the 4
Tier I component as established by KRS 157.440. Notwithstanding KRS 157.440(1)(a), 5
the board of education of each school district may levy an equivalent tax rate as defined 6
in KRS 160.470(9)(a) which will produce up to 17.5 percent of those revenues 7
guaranteed by the SEEK Program. The levy shall be made no later than October 1 of each 8
odd numbered year, and revenue generated by this levy shall be equalized at 150 percent 9
of the statewide average per pupil assessment. 10
(6) Vocational Transportation: Included in the above General Fund 11
appropriation is $7,833,100 in each fiscal year for vocational transportation. 12
(7) Teachers' Retirement System Employer Match: Included in the above 13
General Fund appropriation is $529,410,000 in fiscal year 2026 -2027 and $541,260,000 14
in fiscal year 2027 -2028 to enable local school districts to provide the employer match 15
for qualified employees. 16
(8) Salary Supplements for Nationally Certified Teachers: Notwithstanding 17
KRS 157.395, included in the above General Fund appropriation is $4,000,000 in each 18
fiscal year for the purpose of providing salary supplements for public schoo l teachers 19
attaining certification by the National Board for Professional Teaching Standards. 20
Notwithstanding KRS 157.395, if the appropriation is insufficient to provide the 21
mandated salary supplement for teachers who have obtained this certification, the 22
Department of Education is authorized to pro rata reduce the supplement. 23
(9) SEEK Adjustment Factors: Funds allocated for the SEEK base and its 24
adjustment factors that are not needed for the base or a particular adjustment factor may 25
be allocated to other adjustment factors, if funds for that adjustment factor are not 26
sufficient. 27
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(10) Facilities Support Pr ogram of Kentucky/Equalized Nickel Levies: 1
Included in the above General Fund appropriation is $137,176,700 in fiscal year 2026 -2
2027 and $126,577,500 in fiscal year 2027-2028 to provide facilities equalization funding 3
pursuant to KRS 157.440 and 157.620. 4
(11) Growth Levy Equalization Funding: Included in the above General Fund 5
appropriation is $54,370,400 in fiscal year 2026 -2027 and $46,449,200 in fiscal year 6
2027-2028 to provide facilities equalization funding pursuant to KRS 157.440 and 7
157.620 for distr icts meeting the eligibility requirements of KRS 157.621(1) and (4). 8
Notwithstanding KRS 157.621(1)(b)2., a school district that imposes the levy authorized 9
by KRS 157.621(1)(b)1. shall be equalized for that levy, in addition to the equalization 10
funding ap propriated in accordance with KRS 157.621(1)(b)2., and all funds for this 11
purpose shall be committed to debt service, new facilities, or major renovations in 12
accordance with KRS 157.440(1)(b). It is the intent of the 2026 General Assembly that 13
any local sc hool district receiving equalization under this subsection shall receive full 14
calculated equalization until the earlier of 20 years of the effective date of this Act, or the 15
date the bonds for the local school district supported by this equalization are re tired, in 16
accordance with KRS 157.621(2). 17
(12) Retroactive Equalized Facility Funding: Included in the above General 18
Fund appropriation is $75,574,900 in fiscal year 2026 -2027 and $70,808,700 in fiscal 19
year 2027 -2028 to provide equalized facility funding p ursuant to KRS 157.440 and 20
157.620 to districts meeting the eligibility requirements of KRS 157.621(2) and (4). In 21
addition, a local board of education that levied a tax rate subject to recall by January 1, 22
2014, in addition to the five cents levied pursua nt to KRS 157.440(1)(b) and that 23
committed the receipts to debt service, new facilities, or major renovations of existing 24
facilities shall be eligible for equalization funds from the state at 150 percent of the 25
statewide average per pupil assessment. Revenue to generate the five cent equivalent levy 26
may be obtained from levies on property, motor vehicles, or the taxes authorized by KRS 27
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160.593 to 160.597, 160.601 to 160.633, and 160.635 to 160.648 if the levy was 1
dedicated to facilities funding at the time of the levy. The equalization funds shall be used 2
as provided in KRS 157.440(1)(b). Notwithstanding KRS 157.621(2)(a) and (4), for the 3
2026-2028 fiscal biennium, school districts that levied the tax rate subject to recall prior 4
to January 15, 2024, shall b e equalized at 100 percent of the calculated equalization 5
funding, school districts that levied the tax rate subject to recall after January 15, 2024, 6
and before January 1, 2026, shall be equalized at 25 percent of the calculated equalization 7
funding, and all funds for this purpose shall be committed to debt service, new facilities, 8
or major renovations in accordance with KRS 157.440(1)(b). It is the intent of the 2026 9
General Assembly that any local school district receiving equalization under this 10
subsection shall receive full calculated equalization until the earlier of 20 years from the 11
effective date of this Act or the date the bonds for the local school district supported by 12
this equalization funding are retired, in accordance with KRS 157.621(2). It i s also the 13
intent of the 2026 General Assembly that any local school district that levies a tax rate 14
subject to recall after January 1, 2026, shall not receive equalization in the 2028 -2030 15
fiscal biennium and thereafter. 16
(13) Equalized Facility Funding: Included in the above General Fund 17
appropriation is $18,746,800 in fiscal year 2026 -2027 and $17,186,100 in fiscal year 18
2027-2028 to provide equalized facility funding pursuant to KRS 157.440 and 157.620 to 19
districts meeting the eligibility requirements of KRS 157.621(3) and (4). Notwithstanding 20
KRS 157.621(3)(c), a school district meeting the criteria of KRS 157.621(3)(a) and (b) 21
shall be equalized at 100 percent of the calculated equalization funding in each fiscal 22
year, and all funds for this purpose shal l be committed to debt service, new facilities, or 23
major renovations in accordance with KRS 157.440(1)(b). In addition, notwithstanding 24
KRS 157.621(1) and (3), a school district that has levied a five -cent equivalent rate 25
authorized by KRS 157.621(1)(a) an d is not receiving state equalization funding for that 26
levy under KRS 157.621(1)(b), 157.621(3), or any other provision of this Act, shall be 27
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equalized at 100 percent of the calculated equalization funding in each fiscal year, and all 1
funds for this purpos e shall be committed to debt service, new facilities, or major 2
renovations in accordance with KRS 157.440(1)(b). It is the intent of the 2026 General 3
Assembly that any local school district receiving equalization under this subsection shall 4
receive full ca lculated equalization until the earlier of 20 years of the effective date of 5
this Act, or the date the bonds for the local school district supported by this equalization 6
are retired, in accordance with KRS 157.621(3). 7
(14) BRAC Equalized Facility Funding: Notwithstanding KRS 157.621(1)(c)2., 8
included in the above General Fund appropriation is $3,162,200 in fiscal year 2026 -2027 9
and $2,749,400 in fiscal year 2027 -2028 to provide equalized facility funding to school 10
districts meeting the eligibility requireme nts of KRS 157.621(1)(c)1. pursuant to KRS 11
157.440 and 157.620. It is the intent of the 2026 General Assembly that the district 12
receiving equalization under this subsection shall not receive equalization after the 2028 -13
2030 fiscal biennium. 14
(15) Equalization Funding for Critical Construction Needs Schools: Included 15
in the above General Fund appropriation is $10,136,800 in fiscal year 2026 -2027 and 16
$9,781,800 in fiscal year 2027 -2028 to school districts in accordance with KRS 17
157.621(5). 18
(16) Hold-Harmless Guarantee: A hold-harmless guarantee is established in each 19
fiscal year which provides that every local school district shall receive at least the same 20
amount of SEEK state funding per pupil as was received in fiscal year 1991 -1992. If 21
funds appropriated to the SEEK Program are insufficient to provide the amount of money 22
required under KRS 157.310 to 157.440, and allotments to local school districts are 23
reduced in accordance with KRS 157.430, allocations to school districts subject to this 24
provision shall not be reduced. 25
(17) Residential Youth-at-Risk Programs: In accordance with KRS 157.360, no 26
funds from the SEEK Program shall be distributed to the programs operated by the 27
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Kentucky Guard Youth Challenge Division of the Department of Military Affairs. 1
Notwithstanding KRS 157.350, 157.360, 157.410, and any other statute to the contrary, 2
any school district providing educational services to students enrolled in programs 3
operated by the Kentucky Guard Youth Challenge Division of the Department of Military 4
Affairs shall be paid for those services solely from the General Fund appropriation in Part 5
I, A., 6. of this Act, and students enrolled in such programs shall not be included in the 6
average daily attendance for purposes of SEEK Program funding. 7
(18) Salary Supp lements for Certified Audiologists and Speech Language 8
Pathologists: Included in the above General Fund appropriation is $2,312,000 in each 9
fiscal year for the purpose of providing a $2,000 salary supplement each year for full -10
time public school Audiologis ts and Speech Language Pathologists that have active 11
Certificates of Clinical Competence, as offered by the American Speech -Language-12
Hearing Association. Notwithstanding any statute to the contrary, if the appropriation is 13
insufficient to provide all full -time public school American Speech -Language-Hearing 14
Association certified Audiologists and Speech Language Pathologists with the $2,000 15
stipend, then the Department of Education is authorized to pro rata reduce the 16
supplement. 17
(19) Full-Day Kindergarten: Notwithstanding KRS 157.320 or any other statute 18
or regulation to the contrary, the Department of Education shall count each kindergarten 19
pupil in full for that respective school year, for the purpose of determining SEEK funds 20
and any other state funding ba sed in whole or in part on average daily attendance for the 21
district, except that a district shall receive an amount equal to one-half of the state portion 22
of the average statewide per pupil guaranteed base funding level for each student who 23
graduated early under the provisions of KRS 158.142. 24
(20) SEEK Transportation: Notwithstanding KRS 157.370 and 157.360(2)(c), 25
included in the above General Fund appropriation is $398,884,500 in each fiscal year to 26
support pupil transportation. 27
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(21) Legislative Policy Requirement: The 2026 General Assembly provides the 1
following requirement to local boards of education and the Kentucky Department of 2
Education: 3
(a) Local school districts that receive state funding from the Support Education 4
Excellence in Kentucky Program shall: 5
1. Prominently display, in not less than 16 -point type, on the local board of 6
education’s internet landing page, the district’s percentage of students scoring Proficient 7
in Reading, the district’s percentage of students scoring D istinguished in Reading, the 8
district’s percentage of students scoring Proficient in Mathematics, and the district’s 9
percentage of students scoring Distinguished in Mathematics on the most recent 10
Kentucky Summative Assessment, as defined by KRS 158.6453; 11
2. Prominently display a web link to the detailed results of the district’s 12
performance on the most recent Kentucky Summative Assessment on the local board of 13
education’s internet landing page; 14
3. Display the same information specified in subparagraph 1. of this paragraph at 15
the top of each page of the board’s website in a banner format; 16
4. Prominently display, in not less than 16 -point type, on each school’s internet 17
landing page, the school’s percentage of students scoring Proficient in Reading, the 18
school’s percentage of students scoring Distinguished in Reading, the percentage of 19
students scoring Proficient in Mathematics, and the percentage of students scoring 20
Distinguished in Mathematics on the school’s most recent Kentucky Summative 21
Assessment; 22
5. Prominently display on each school’s internet landing page, a link to the 23
detailed results of the school’s results on the most recent Kentucky Summative 24
Assessment; and 25
6. Display the same information specified in subparagraph 4. of this paragraph in 26
banner format on each page of the school’s website; 27
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(b) The Kentucky Department of Education shall post a rank order by overall 1
academic performance of all schools on its website; 2
(c) The Kentucky Department of Education shall ensure compliance with this 3
subsection by every district, and offer assistance, as needed; 4
(d) The 2026 General Assembly is aware of the intention of surrounding states to 5
set increased minimum salaries for classroom teachers in those states by statute or 6
regulation. The General Assembly also recognizes the fact that the local economy heavily 7
affects the salary schedules of classified employees; and 8
(e) The 2026 General Assembly directs each local board of education to consider 9
the actions of other states and the local economy and the related effect on recruitment and 10
retention when establishing the salary schedules for classroom teachers and classified 11
employees. Additional funds have been made available to local school districts through 12
increases in SEEK resources. The 2026 General Assembly en courages local school 13
districts to provide certified and classified staff a salary or compensation increase. 14
(22) Star Charter Academy: Included in the above General Fund appropriation is 15
$1,000,000 in each fiscal year as a one -time allocation to support a pilot program of Star 16
Academy schools within existing public schools throughout the state. 17
(23) SEEK Per Pupil Reporting: Publicly available reports published or 18
distributed by the Kentucky Department of Education related to the SEEK Program 19
disbursements to districts shall include adjustments that capture the total state funding per 20
student by aggregating all state appropriations made on behalf of school districts, 21
including Teachers’ Retirement System payments and insurance payments, and express 22
the tota ls on a per pupil basis using the district’s prior year statewide average daily 23
attendance. These calculations shall be separate from and shall not be incorporated into 24
the SEEK formula or used to determine SEEK allotments. 25
(24) Academic Academies: Notwithstanding KRS 157.310 to 157.440 and 26
157.621, students enrolled in the Craft Academy for Excellence in Science and 27
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Mathematics, the Gatton Academy for Excellence in Science and Mathematics in 1
Kentucky, and the Votruba Young Scholars Academy shall not be included in the average 2
daily attendance of the students’ districts of residence for the purpose of calculating 3
SEEK program funding in each fiscal year of the 2026-2028 fiscal biennium. 4
(25) Model Laboratory School SEEK Calculation Adjustment: 5
Notwithstanding KRS 164.380(5), adjustments to SEEK Program funding for students 6
attending the Eastern Kentucky University Model Laboratory School shall be reduced by 7
$900,000 in fiscal year 2026 -2027 and $1,800,000 in fiscal year 2027 -2028. It is the 8
intent of the 2026 General Assembly to eliminate the adjustment in subsequent fiscal 9
years. 10
(26) Transportation Calculation Flexibility: Notwithstanding KRS 157.370 and 11
702 KAR 5:020, a school district may request that the Commissioner of Education use 12
the second preceding year’s days transported in place of the prior year’s days transported 13
for purposes of the calculation under KRS 157.370 and 702 KAR 5:020 if the district 14
calendar was negatively impacted by new construction or major renovations. Nothing in 15
this provision s hall require a school district to use a number of days transported that 16
would reduce the funding calculated under KRS 157.370. 17
2. OPERATIONS AND SUPPORT SERVICES 18
2026-27 2027-28 19
General Fund 62,072,200 60,564,500 20
Restricted Funds 4,751,300 5,612,800 21
Federal Funds 565,770,700 565,989,000 22
TOTAL 632,594,200 632,166,300 23
(1) Advanced Placement and International Baccalaureate Exams: 24
Notwithstanding KRS 160.348(3), included in the above General Fund appropriation is 25
$960,000 in fiscal year 2 026-2027 and $930,000 in fiscal year 2027 -2028 to pay the cost 26
of Advanced Placement and International Baccalaureate examinations for those students 27
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who meet the eligibility requirements for free or reduced-price meals. 1
(2) Employee Reporting: The Kentucky Department of Education shall provide 2
a report by August 1 of each year to the Interim Joint Committee on Appropriations and 3
Revenue. At a minimum, the report shall include: 4
(a) A count and list, by name, of all full -time, part-time, and interim employees 5
employed under KRS Chapter 18A; 6
(b) A count and list, by name, of all contract employees; 7
(c) The position title, Kentucky Department of Education office served, and 8
primary work location of every employee; 9
(d) The employees’ level of compensation, on an annualized basis, including the 10
percentage of all fund sources used to compensate the employee; and 11
(e) For contract employees, the start and end date of the relevant contract, as well 12
as the name of any entity involved in administering the contract. 13
(3) Certified and Classified Staff Compensation Increase Reporting: The 14
Kentucky Department of Education shall provide a report by September 1 of each year to 15
the Interim Joint Committee on Appropriations and Revenue detailing certified and 16
classified staff compensation increases for the current school year by each local school 17
district. At a minimum, the report shall include: 18
(a) A brief description of the type of staff compensation increases adopted, such 19
as percentage-based or flat rate, if applicable; 20
(b) The average percentage rate or dollar amount of the compensation increases, 21
by classification, if applicable; 22
(c) The effective date of the compensation increases, if applicable; 23
(d) The manner in which the com pensation increases were delineated, such as 24
universally or by job classification, if applicable; 25
(e) Any monetary compensation in addition to that provided through the district’s 26
single salary schedule, such as one-time payments, if applicable; 27
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(f) The date the local board of education adopted the compensation increases, if 1
applicable; and 2
(g) Any changes to the local school district’s certified and/or classified staff 3
single salary schedule(s), if applicable. 4
(4) Blind/Deaf Residential Travel Program: Included in the above General 5
Fund appropriation is $472,600 in fiscal year 2026 -2027 and $457,800 in fiscal year 6
2027-2028 for the Blind/Deaf Residential Travel Program. 7
(5) Educators Employment Liability Insurance Program: Included in the 8
above General Fund appropriation is $4,800,000 in fiscal year 2026-2027 and $4,650,000 9
in fiscal year 2027-2028 to support the educators employment liability insurance program 10
pursuant to KRS 161.212. 11
(6) School and Community Nutrition Programs: Included in the above Federal 12
Funds appropriation is an additional $100,181,200 in each fiscal year to support increased 13
spending on school and community nutrition programs. 14
(7) Special Examination: Included in the above appropriations is sufficient 15
funding to implement and carry out the provisions of 2024 Ky. Acts ch. 118. 16
(8) Local School District Insurance Coverage Report: The Kentucky 17
Department of Education shall submit a report detailing each local school district’s 18
insurance coverage to the Department of Insurance no later th an October 1, 2026. The 19
report shall at a minimum include, for each district, the insurer and level of insurance 20
coverage, as required under 702 KAR 3:030. 21
(9) School District Project and Indebtedness Report: The Kentucky 22
Department of Education, with assi stance from the School Facilities Construction 23
Commission, shall compile and submit a report to the Interim Joint Committee on 24
Appropriations and Revenue by June 30, 2027. The report shall be submitted in a format 25
set forth by the Legislative Research Comm ission and shall include, at a minimum, a list 26
of every local school district’s existing bonded projects, the date and amount of any 27
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additional tax levy enacted by a school board for each project, any equalization 1
provisions provided for each project, the total amount of debt service payments made by 2
each district, and the amount of debt service remaining and anticipated retirement dates 3
of the debt service associated with each project. 4
3. LEARNING AND RESULTS SERVICES 5
2026-27 2027-28 6
General Fund 1,526,964,400 1,729,548,700 7
Restricted Funds 36,143,000 43,692,000 8
Federal Funds 621,154,200 619,729,900 9
TOTAL 2,184,261,600 2,392,970,600 10
(1) Kentucky Education Technology System: Notwithstanding KRS 157.650 to 11
157.665, the School for the De af and the School for the Blind shall be fully eligible, 12
along with local school districts, to participate in the Kentucky Education Technology 13
System in a manner that takes into account the special needs of the students of these two 14
schools. 15
(2) Family Re source and Youth Services Centers: Funds appropriated to 16
establish and support Family Resource and Youth Services Centers shall be transferred in 17
each fiscal year to the Cabinet for Health and Family Services consistent with KRS 18
156.496. The Cabinet for He alth and Family Services is authorized to use, for 19
administrative purposes, no more than two percent of the total funds transferred from the 20
Department of Education for the Family Resource and Youth Services Centers. If a 21
certified person is employed as a director or coordinator of a Family Resource and Youth 22
Services Center, that person shall retain his or her status as a certified employee of the 23
school district. 24
(3) Health Insurance: Included in the above General Fund appropriation is 25
$1,076,821,500 in fiscal year 2026-2027 and $1,277,823,800 in fiscal year 2027-2028 for 26
employer contributions for health insurance and the contribution to the health 27
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reimbursement account for employees waiving coverage. Notwithstanding KRS 45.229, 1
General Fund in the amount of $98,310,700 in fiscal year 2025 -2026 shall not lapse and 2
shall carry forward into fiscal year 2026-2027. 3
(4) Program Flexibility: Notwithstanding KRS 158.070(8) and 158.446, local 4
school districts shall be provided additional flexibility in the utiliza tion of funds for 5
Extended School Services and Safe Schools. Local school districts shall continue to 6
address the governing statutes and serve the intended student population but may utilize 7
funds from these programs for general operating expenses in each year of the fiscal 8
biennium. Local school districts that utilize these funds for general operating expenses 9
shall report to the Kentucky Department of Education and the Interim Joint Committee 10
on Education the amount of funding from each program utilized f or general operating 11
expenses. 12
(5) Center for School Safety: Included in the above General Fund appropriation 13
is $15,000,000 in each fiscal year for the Center for School Safety. Notwithstanding KRS 14
158.446, the Center for School Safety shall allot these m oneys for the purposes described 15
in KRS 158.440, 158.441, 158.4415, 158.4416, 158.442, 158.445, and 158.446 at both 16
public and private school buildings, campuses, grounds, recreational areas, or athletic 17
fields, except that no more than $2,000,000 in each fiscal year may be retained for 18
operating and administrative purposes. 19
(6) Allocations to School -Based Decision Making Councils: Notwithstanding 20
KRS 160.345(8), for each fiscal year, a local board of education may reduce the 21
allocations to individual schools within the district as outlined in 702 KAR 3:246, secs. 6, 22
7, and 8. The allocation under 702 KAR 3:246, sec. 6 shall not be less than $100 per 23
pupil in average daily attendance. 24
(7) Kentucky School for t he Blind and Kentucky School for the Deaf: 25
Included in the above General Fund appropriation is $8,289,100 in each fiscal year for 26
the Kentucky School for the Blind and $11,291,800 in each fiscal year for the Kentucky 27
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School for the Deaf. 1
(8) Career and Tec hnical Education: Included in the above General Fund 2
appropriation is $127,115,900 in each fiscal year for career and technical education. Of 3
this amount, $70,063,400 in each fiscal year shall be distributed as supplemental funding 4
to support qualifying lo cally operated career and technical education centers, state -5
operated area technology centers, and programs based on enrollment and incentive 6
criteria, pursuant to KRS 157.069. 7
The General Assembly recognizes that supplemental funding for locally operated 8
career and technical education centers and state -operated area technology centers is 9
recurring, and it is the intent of the 2026 General Assembly to evaluate those funding 10
needs before January 1, 2028. 11
(9) Redistribution of Resources: Notwithstanding KRS 1 56.095, 156.553, 12
156.555, 157.390, 158.070, 158.770, 158.775, 158.805, 161.027, 161.028, 161.030, 13
161.165, and 161.167, no General Fund is provided for the Professional Development 14
Program, the Commonwealth School Improvement Fund, the Leadership and Mento r 15
Fund, the Middle School Academic Center, the Teacher's Professional Growth Fund, the 16
Teacher Academies Program, the Writing Program, the Kentucky Principal Internship 17
Program, the Kentucky Teacher Internship Program, and the Kentucky Academy for 18
Equity in Teaching in order to increase funding for school -based mental health services 19
providers. 20
(10) Learning and Results Services Programs: Included in the above General 21
Fund appropriation are the following allocations for the 2026 -2028 fiscal biennium, but 22
no portion of these funds shall be utilized for state-level administrative purposes: 23
(a) $1,900,000 in each fiscal year for AdvanceKentucky; 24
(b) $1,850,000 in each fiscal year for the Community Education Program; 25
(c) $3,000,000 in each fiscal year for Dataseam; 26
(d) $23,916,300 in each fiscal year for the Extended School Services Program; 27
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(e) $48,889,000 in each fiscal year for the Family Resource and Youth Services 1
Centers Program; 2
(f) $10,000,000 in each fiscal year for the Gifted and Talented Program; 3
(g) $100,000 in each fiscal year for the Hearing and Speech Center; 4
(h) $100,000 in each fiscal year for the Heuser Hearing and Language Academy; 5
(i) Notwithstanding KRS 154A.130(4), $1,675,500 in each fiscal year for the 6
Jobs for America’s Graduates Program; 7
(j) $500,000 in each fiscal year for the Kentucky Alliance of Boys & Girls Clubs; 8
(k) $12,500,000 in each fiscal year for the Kentucky Educational Collaborative 9
for State Agency Children; 10
(l) $1,391,000 in each fiscal year for Local School District Life Insurance; 11
(m) $1,000,000 in each fiscal year for Math Nation; 12
(n) $5,019,000 in each fiscal year for the Mathematics Achievement Fund; 13
(o) $84,481,100 in each fiscal year for the Preschool Program; 14
(p) $12,261,100 in each fiscal year for the Read to Achieve Program. 15
Notwithstanding KRS 154A.130(3)(b), included in the above appropriation is $1,124,500 16
from lottery proceeds; 17
(q) $11,000,000 in each fiscal year for the Read to Succeed Program; 18
(r) $2,000,000 in each fiscal year for Save the Children; 19
(s) $1,200,000 in each fiscal year for the Statewide Reading Research Center; 20
(t) $700,000 in each fiscal year for Teach for America. Teach for America shall 21
submit a report on the outcomes of the program to the Interim Joint Committee on 22
Education by August 1, 2027; 23
(u) $500,000 in each fiscal year for the Visually Impaired Preschool Services 24
Program; and 25
(v) $1,500,000 in each fiscal year for We Lead CS. 26
It is the intent of the 2026 General Assembly to reevaluate each Learning and 27
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Results Services Program, both in dividually and collectively, to optimize funding and 1
support for Kentucky students. 2
(11) School-Based Mental Health Services Providers: Included in the above 3
General Fund appropriation is $7,412,500 in each fiscal year to fund school -based mental 4
health se rvices provider full -time equivalent positions on a reimbursement basis. The 5
Kentucky Center for School Safety, in consultation with the Office of the State School 6
Security Marshal, shall develop criteria to determine which districts shall receive funding 7
to meet the requirements of KRS 158.4416(3)(a). The criteria shall include: 8
(a) A local district’s use of Medicaid funding to supplement General Fund; 9
(b) An equitable and balanced statewide distribution; and 10
(c) Any other criteria to support a trauma-informed approach in schools. 11
(12) School Resource Officers: Included in the above appropriations is 12
$11,500,000 in General Fund and $11,500,000 in Restricted Funds in each fiscal year to 13
assist local school districts and nonpublic schools in funding salaries for school resource 14
officers. The Kentucky Department of Education shall reimburse local school districts 15
and nonpublic schools up to $20,000 for each full -time certified school resource officer. 16
Notwithstanding KRS 15.430 and 15.470, excess Restricted Funds from the Department 17
of Criminal Justice Training shall be transferred to the Kentucky Department of 18
Education for this purpose. 19
(13) Federal Remedial Education Grants: It is the intent of the 2026 General 20
Assembly that the Kentucky Department of Education shall apply for all federal grants 21
available for remedial education. 22
(14) Principal Leadership Development Practicum: Included in the above 23
General Fund appropriation is a one -time allocation of $1,000,000 in e ach fiscal year to 24
support a new program, overseen by the Kentucky Department of Education, to develop 25
and mentor new school principals. 26
TOTAL - DEPARTMENT OF EDUCATION 27
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2026-27 2027-28 1
General Fund 5,122,958,400 5,355,283,400 2
Restricted Funds 40,894,300 49,304,800 3
Federal Funds 1,186,924,900 1,185,718,900 4
TOTAL 6,350,777,600 6,590,307,100 5
D. EDUCATION AND LABOR CABINET 6
Budget Units 7
1. GENERAL ADMINISTRATION AND PROGRAM SUPPORT 8
2026-27 2027-28 9
General Fund (Tobacco) 1,063,800 983,200 10
General Fund 13,593,600 13,262,100 11
Restricted Funds 23,082,900 22,889,600 12
Federal Funds 5,641,200 5,675,400 13
TOTAL 43,381,500 42,810,300 14
(1) Early Childhood Development: Included in the above General Fund 15
(Tobacco) appropriation i s $1,063,800 in fiscal year 2026 -2027 and $983,200 in fiscal 16
year 2027-2028 for the Early Childhood Advisory Council. 17
(2) Heuser Hearing Institute: Included in the above General Fund appropriation 18
is $1,920,000 in fiscal year 2026 -2027 and $1,860,000 in fi scal year 2027 -2028 for the 19
Heuser Hearing Institute to support programs developed to close the education and 20
achievement gaps for deaf and hard-of-hearing adults. 21
(3) The Hope Center: Included in the above General Fund appropriation is 22
$96,000 in fiscal year 2026 -2027 and $93,000 in fiscal year 2027 -2028 for the Hope 23
Center. 24
(4) Lapse and Reallocation of Early Childhood Development Fund 25
Appropriations: Notwithstanding KRS 194A.055, 200. 151, 248.654, and any statute to 26
the contrary, $6,500,000 in General Fund (Tobacco) settlement agreement funds 27
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previously appropriated from the Early Childhood Development Fund to the General 1
Administration and Program Support budget unit within the Education and Labor Cabinet 2
for the benefit of the Early Childhood Advisory Council shall lapse to the Tobacco 3
Settlement Agreement Fund established in KRS 248.654. 4
2. PROPRIETARY EDUCATION 5
2026-27 2027-28 6
Restricted Funds 542,300 547,300 7
3. DEAF AND HARD OF HEARING 8
2026-27 2027-28 9
General Fund 1,075,400 1,067,600 10
Restricted Funds 1,360,200 1,326,700 11
TOTAL 2,435,600 2,394,300 12
4. KENTUCKY EDUCATIONAL TELEVISION 13
2026-27 2027-28 14
General Fund 17,425,000 17,771,600 15
Restricted Funds 2,038,900 2,038,900 16
TOTAL 19,463,900 19,810,500 17
5. ENVIRONMENTAL EDUCATION COUNCIL 18
2026-27 2027-28 19
Restricted Funds 524,000 521,700 20
Federal Funds 429,800 429,800 21
TOTAL 953,800 951,500 22
(1) Environmental Education Counci l: Notwithstanding KRS 224.43 -23
505(2)(b), the Council may use interest received to support the operations of the Council. 24
6. LIBRARIES AND ARCHIVES 25
a. General Operations 26
2026-27 2027-28 27
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General Fund 5,959,200 6,389,100 1
Restricted Funds 2,922,300 2,358,800 2
Federal Funds 3,038,300 3,071,000 3
TOTAL 11,919,800 11,818,900 4
b. Direct Local Aid 5
2026-27 2027-28 6
General Fund 5,574,700 5,574,700 7
Restricted Funds 1,046,900 1,046,900 8
TOTAL 6,621,600 6,621,600 9
(1) Per Capita Grants: Notwithstanding KRS 171.201, no General Fund is 10
provided for nonconstruction state aid. 11
(2) Public Library Facilities Construction: Included in the above General Fund 12
appropriation is $3,074,700 in each fiscal year for the Public Library Facilities 13
Construction Fund. Notwithstanding KRS 45.229 and 171.027 to 171.223, any expired 14
debt service payments shall lapse to the Budget Reserve Trust Fund Account (KRS 15
48.705). 16
(3) Dolly Parton's Imagination Library: Included in the above General Fun d 17
appropriation is $2,500,000 in each fiscal year for the Imagination Library of Kentucky 18
Program. The General Assembly hereby directs the Department for Libraries and 19
Archives and the Cabinet for Health and Family Services to collaborate on researching 20
ways to increase enrollment in Dolly Parton's Imagination Library Program for children 21
from low -income households and children living in foster care. The Department for 22
Libraries and Archives and the Cabinet for Health and Family Services shall submit a 23
joint report detailing their findings, identified strategies, and cost of implementation to 24
the Governor and the Legislative Research Commission by November 1, 2026. 25
TOTAL - LIBRARIES AND ARCHIVES 26
2026-27 2027-28 27
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General Fund 11,533,900 11,963,800 1
Restricted Funds 3,969,200 3,405,700 2
Federal Funds 3,038,300 3,071,000 3
TOTAL 18,541,400 18,440,500 4
7. WORKFORCE DEVELOPMENT 5
2026-27 2027-28 6
General Fund 40,226,200 39,771,200 7
Restricted Funds 12,965,600 12,911,900 8
Federal Funds 480,160,800 481,629,200 9
TOTAL 533,352,600 534,312,300 10
(1) Cafeteria Service Contracts: No state agency shall enter into any contract 11
with a nongovernmental entity for the operation of food services provided in the 12
cafeterias located in the Kentucky T ransportation Cabinet office building and/or the 13
Cabinet for Human Resources office building in Frankfort unless the Office of 14
Vocational Rehabilitation has declined in writing to provide such services. 15
(2) Adult Education: Included in the above General Fu nd appropriation are 16
sufficient funds in each fiscal year to support the Office of Adult Education. 17
Notwithstanding KRS 45.229, the General Fund appropriation for the Office of Adult 18
Education in each fiscal year shall not lapse and shall carry forward. 19
(3) Unemployment Insurance System Replacement: Notwithstanding KRS 20
341.243(8), the Service Capacity Upgrade Fund may collect up to $68,000,000 for the 21
purpose of funding the Replace Unemployment Insurance System project authorized in 22
2024 Ky. Acts ch. 175, P art II, D., 4., 005. The Office of Unemployment Insurance shall 23
prepare a report detailing the replacement of the unemployment insurance system. The 24
report shall include a description of how the allocated Restricted Funds are being utilized 25
and a timeline of expected completion and implementation of a new system. This report 26
shall be submitted to the Interim Joint Committee on Appropriations and Revenue 27
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quarterly, beginning May 1, 2026. 1
(4) Vocational Rehabilitation: Included in the above General Fund 2
appropriation is $3,500,000 in fiscal year 2026 -2027 and $3,600,000 in fiscal year 2027 -3
2028 for the Office of Vocational Rehabilitation to support an increase in the match and 4
maintenance of effort requirement for the Vocational Rehabilitation Grants to States 5
(Basic Support) federal award. 6
8. WORKPLACE STANDARDS 7
2026-27 2027-28 8
General Fund 1,694,800 1,676,000 9
Restricted Funds 8,448,300 8,357,600 10
Federal Funds 4,200,000 4,291,500 11
TOTAL 14,343,100 14,325,100 12
(1) Youth Employment Programs: Included in the above appropriations is 13
sufficient funding to implement and carry out the provisions of 2024 Ky. Acts ch. 119. 14
(2) Court-Awarded Expenses: Included in the above appropriations is sufficient 15
funding to implement and carry out the provisions of 2025 Ky. Acts ch. 105. 16
9. WORKERS' CLAIMS 17
2026-27 2027-28 18
Restricted Funds 60,812,900 59,744,500 19
10. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 20
2026-27 2027-28 21
Restricted Funds 780,800 772,100 22
11. WORKERS' COMPENSATION FUNDING COMMISSION 23
2026-27 2027-28 24
Restricted Funds 88,165,200 86,108,500 25
12. WORKERS' COMPENSATION NOMINATING COMMITTEE 26
2026-27 2027-28 27
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Restricted Funds 1,100 1,100 1
13. DISABILITY DETERMINATIONS 2
2026-27 2027-28 3
Restricted Funds 823,600 814,300 4
Federal Funds 66,308,700 67,256,300 5
TOTAL 67,132,300 68,070,600 6
TOTAL - EDUCATION AND LABOR CABINET 7
2026-27 2027-28 8
General Fund (Tobacco) 1,063,800 983,200 9
General Fund 85,548,900 85,512,300 10
Restricted Funds 203,515,000 199,439,900 11
Federal Funds 559,778,800 562,353,200 12
TOTAL 849,906,500 848,288,600 13
E. ENERGY AND ENVIRONMENT CABINET 14
Budget Units 15
1. SECRETARY 16
2026-27 2027-28 17
General Fund 4,188,400 4,149,400 18
Restricted Funds 4,882,300 4,821,900 19
Federal Funds 1,330,900 1,361,100 20
TOTAL 10,401,600 10,332,400 21
2. ADMINISTRATIVE SERVICES 22
2026-27 2027-28 23
General Fund 6,145,600 6,112,100 24
Restricted Funds 6,270,600 6,286,500 25
Federal Funds 3,695,000 3,751,600 26
TOTAL 16,111,200 16,150,200 27
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3. ENVIRONMENTAL PROTECTION 1
2026-27 2027-28 2
General Fund 28,315,000 28,464,200 3
Restricted Funds 84,816,000 82,962,100 4
Federal Funds 39,597,300 40,153,800 5
TOTAL 152,728,300 151,580,100 6
(1) Public and Private Dam Rehabilitation: The Department for Environmental 7
Protection shall submit a report to the Legislative Research Commission, Office of 8
Budget Review, by September 1, 2027, recommending the priority ranking and funding 9
mechanisms for rehabilitating public and private high hazard dams within the 10
Commonwealth. The Department may work collaboratively with the Soil and Water 11
Conservation Commission (KRS 146.110). 12
(2) Pollutants of Kentucky Waterways: Included in the above appropriatio ns is 13
sufficient funding to implement and carry out the provisions of 2024 Ky. Acts ch. 105. 14
(3) Long-term Post-mining Water Treatment Permits: Included in the above 15
appropriations is sufficient funding to implement and carry out the provisions of 2025 16
Ky. Acts ch. 119. 17
4. NATURAL RESOURCES 18
2026-27 2027-28 19
General Fund (Tobacco) 2,659,600 2,457,900 20
General Fund 40,384,500 40,416,000 21
Restricted Funds 24,671,200 23,800,500 22
Federal Funds 176,361,500 176,912,900 23
TOTAL 244,076,800 243,587,300 24
(1) Emergency Forest Fire Suppression: Not less than $2,500,000 of the above 25
General Fund appropriation in each fiscal year shall be set aside for emergency forest fire 26
suppression. Notwithstanding KRS 45.229, any portion of the $2,500,000 not exp ended 27
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for emergency forest fire suppression shall lapse to the Budget Reserve Trust Fund 1
Account (KRS 48.705) at the end of each fiscal year. There is appropriated from the 2
General Fund the necessary funds, subject to the conditions and procedures provided in 3
this Act, which are required as a result of emergency fire suppression activities in excess 4
of $2,500,000 in each fiscal year. Fire suppression costs in excess of $2,500,000 annually 5
shall be deemed necessary government expenses and shall be paid, up t o $4,000,000 in 6
each fiscal year, from the General Fund Surplus Account (KRS 48.700) or the Budget 7
Reserve Trust Fund Account (KRS 48.705). 8
(2) Environmental Stewardship Program: Included in the above General Fund 9
(Tobacco) appropriation is $1,773,100 in f iscal year 2026 -2027 and $1,638,600 in fiscal 10
year 2027-2028 for the Environmental Stewardship Program. 11
(3) Conservation District Local Aid: Included in the above General Fund 12
(Tobacco) appropriation is $886,500 in fiscal year 2026 -2027 and $819,300 in fiscal year 13
2027-2028 for the Division of Conservation to provide direct aid to local conservation 14
districts. 15
5. ENERGY POLICY 16
2026-27 2027-28 17
General Fund 1,617,400 1,572,700 18
Restricted Funds 613,100 607,100 19
Federal Funds 62,541,200 62,555,900 20
TOTAL 64,771,700 64,735,700 21
6. KENTUCKY NATURE PRESERVES 22
2026-27 2027-28 23
General Fund 1,650,800 1,633,900 24
Restricted Funds 2,640,900 2,622,900 25
Federal Funds 275,100 278,200 26
TOTAL 4,566,800 4,535,000 27
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7. PUBLIC SERVICE COMMISSION 1
2026-27 2027-28 2
General Fund 14,622,900 14,481,000 3
Restricted Funds 2,967,500 2,914,400 4
Federal Funds 1,108,300 1,119,900 5
TOTAL 18,698,700 18,515,300 6
(1) Siting and Construction of Nuclear Energy Facilities: Included in the 7
above appropriations is sufficient funding to implement and carry out the provisions of 8
2024 Ky. Acts ch. 29. 9
(2) Energy Planning and Inventory Commission: Included in the above 10
appropriations is sufficient funding to implement and carry out the provisions of 2024 11
Ky. Acts ch. 172. 12
(3) Additional Personnel: Included in the above General Fund appropriation is 13
$797,500 in fiscal year 2026 -2027 and $822,200 in fiscal year 2027 -2028 to support 14
additional personnel and operating expenses. 15
TOTAL - ENERGY AND ENVIRONMENT CABINET 16
2026-27 2027-28 17
General Fund (Tobacco) 2,659,600 2,457,900 18
General Fund 96,924,600 96,829,300 19
Restricted Funds 126,861,600 124,015,400 20
Federal Funds 284,909,300 286,133,400 21
TOTAL 511,355,100 509,436,000 22
F. FINANCE AND ADMINISTRATION CABINET 23
Budget Units 24
1. GENERAL ADMINISTRATION 25
2026-27 2027-28 26
General Fund 9,803,700 13,468,900 27
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Restricted Funds 45,074,400 41,161,500 1
TOTAL 54,878,100 54,630,400 2
(1) Kentucky Affordable Prepaid Tuition Trust Fund: Included in the above 3
General Fund appropriation is $5,100,000 in fiscal year 2026 -2027 and $5,600,000 in 4
fiscal year 2027 -2028 to support projected tuition payments and refunds through fiscal 5
year 2025-2026. 6
2. CONTROLLER 7
2026-27 2027-28 8
General Fund 4,216,900 5,378,100 9
Restricted Funds 19,672,600 18,109,700 10
TOTAL 23,889,500 23,487,800 11
(1) Social Security Contingent Liability Fund: Any expenditures that may be 12
required by KRS 61.470 are hereby deemed necessary government expenses and shall be 13
paid first from the General Fund Surplus Account (KRS 48.700), if available, or from any 14
available balance in the Budget Reserve Trust Fund Acc ount (KRS 48.705), subject to 15
the conditions and procedures provided in this Act. 16
(2) Controller Operations: Notwithstanding KRS 61.470, included in the above 17
Restricted Funds appropriations is $560,000 in fiscal year 2026 -2027 and $140,000 in 18
fiscal year 2027-2028 to support the operations of the Office of the Controller. 19
3. DEBT SERVICE 20
2026-27 2027-28 21
General Fund (Tobacco) 14,100,200 13,880,800 22
General Fund 596,104,400 816,242,400 23
TOTAL 610,204,600 830,123,200 24
(1) Kentucky State Police Two-Way Radio Debt Service: Notwithstanding 25
KRS 150.021(2), the Department of Fish and Wildlife Resources shall transfer $599,200 26
in each fiscal year to the Finance and Administration Cabinet to partially support debt 27
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service on the Kentucky State Police Two-Way Radio System project. 1
(2) Debt Service: Included in the above General Fund appropriation is 2
$42,383,000 in fiscal year 2026-2027 and $103,824,000 in fiscal year 2027 -2028 for new 3
debt service to support new bonds as set forth in Part II, Capital Pr ojects Budget, of this 4
Act. 5
(3) Carry Forward of General Fund Appropriation Balance: Notwithstanding 6
KRS 45.229 and 48.720, General Fund in the amount of $18,500,000 in fiscal year 2025 -7
2026 shall not lapse and shall carry forward into fiscal year 2026-2027. 8
(4) Use of Restricted Funds for Debt Service: Notwithstanding KRS 9
218B.080(3), $12,000,000 in each fiscal year; notwithstanding KRS 286.1 -485(3), 10
$9,000,000 in each fiscal year; notwithstanding KRS 42.4582, $6,500,000 in each fiscal 11
year; notwithstandin g KRS 243.025(3), $6,000,000 in each fiscal year; and 12
notwithstanding KRS 14.140, $5,000,000 in each fiscal year, are hereby transferred to the 13
Debt Service Fund to be used to pay debt service on General Fund supported bonds 14
previously issued by the Commonwealth. 15
4. FACILITIES AND SUPPORT SERVICES 16
2026-27 2027-28 17
General Fund 9,100,200 9,000,500 18
Restricted Funds 57,654,700 57,117,600 19
TOTAL 66,754,900 66,118,100 20
(1) Capitol Annex Renovation: Notwithstanding KRS 42.425 and any statute to 21
the contrary, the administration and management of the Capitol Annex Renovation 22
project authorized in 2024 Ky. Acts ch. 175, Part II, F., 2., 009. shall be approved by the 23
Director of the Legislative Research Commission or his designee. 24
5. COUNTY COSTS 25
2026-27 2027-28 26
General Fund 29,243,500 29,243,500 27
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Restricted Funds 1,702,500 1,702,500 1
TOTAL 30,946,000 30,946,000 2
(1) County Costs: Funds required to pay county costs are appropriated and 3
additional funds may be allotted from the General Fund Surplus Account (KRS 48.700) 4
or the Budget Reserve Trust Fund Account (KRS 48.705) by the Secretary of the Finance 5
and Administration Cabinet, subject to the conditions and procedures provided in this 6
Act. 7
(2) Reimbursement to Sheriffs’ Offices for Court Security Services: 8
Notwithstanding KRS 64.092(6), the sheriff or other law enforcement officer serving a 9
Circuit or District Court shall be compensated at the rate of $15 per hour of service. To 10
be eligible for this enhanced rate, deputies providing services must be paid at least $10 11
per hour. 12
6. COMMONWEALTH OFFICE OF TECHNOLOGY 13
2026-27 2027-28 14
Restricted Funds 136,597,800 134,398,500 15
Federal Funds 1,716,600 1,716,600 16
TOTAL 138,314,400 136,115,100 17
(1) Computer Services Fund Receipts: The Secretary of the Finance and 18
Administration Cabinet shall provide a listing of fee receipts from the Executive, Judicial, 19
and Legislative Branches of government itemized by appropriation units, cost allocati on 20
methodology, and a report detailing the rebate of excess fee receipts to the agencies to the 21
Interim Joint Committee on Appropriations and Revenue by August 1 of each fiscal year. 22
(2) Legacy Modernization: The Commonwealth Office of Technology shall 23
prepare a report for the Legacy Modernization capital project authorized in 2024 Ky. 24
Acts ch. 175, Part II, F., 3., 001. The report shall include a list of legacy IT systems that 25
have been completed, the date in which they were completed, the state agency the IT 26
system was for, and a status report for the completion percentage of all other ongoing 27
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modernization projects. This report shall be submitted to the Interim Joint Committee on 1
Appropriations and Revenue by October 31 of each fiscal year. 2
(3) Security E nhancements: Included in the above Restricted Funds 3
appropriation is $625,800 in fiscal year 2026 -2027 and $1,719,100 in fiscal year 2027 -4
2028 to support security enhancements in key areas such as email integrity, data 5
classification, directory resilience, and incident response and training. 6
(4) Centralized Registry of Artificial Intelligence Systems: Included in the 7
above appropriations is sufficient funding to implement and carry out the provisions of 8
2025 Ky. Acts ch. 66. 9
7. REVENUE 10
2026-27 2027-28 11
General Fund (Tobacco) 250,000 250,000 12
General Fund 123,420,800 125,474,400 13
Restricted Funds 12,448,900 12,448,900 14
Federal Funds 50,000 50,000 15
TOTAL 136,169,700 138,223,300 16
(1) Operations of Revenue: Notwithstanding KRS 132.672, 134. 552(2), 17
136.652, and 365.390(2), funds may be expended in support of the operations of the 18
Department of Revenue. 19
(2) State Enforcement: Notwithstanding KRS 248.654 and 248.703(4), a total of 20
$250,000 of the Tobacco Settlement payments received in each fiscal year is appropriated 21
to the Finance and Administration Cabinet, Department of Revenue, for the state's 22
diligent enforcement of noncompliant nonparticipating manufacturers. 23
8. PROPERTY VALUATION ADMINISTRATORS 24
2026-27 2027-28 25
General Fund 64,978,600 64,663,500 26
Restricted Funds 4,786,400 4,786,000 27
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TOTAL 69,765,000 69,449,500 1
(1) Management of Expenditures: Notwithstanding KRS 132.590 and 132.597, 2
the property valuation administrators are authorized to take necessary actions to manage 3
expenditures within the appropriated amounts contained in this Act. 4
(2) Salary Increment: Notwithstanding KRS 132.590(3)(b), the increment 5
provided on the base salary or wages of each eligible property valuation administrator 6
shall be the same as that provided for eligible state employees in Part IV of this Act. The 7
placement and advancement on the proper step of the salary schedule for property 8
valuation administrators as set forth in 132.590(2) shall continue to apply. The increment 9
changes should be applied to the salary schedule for property valuation administrators for 10
the duration of this biennial budget. 11
**[(3) Use of Statewide Aerial Mapping System: Notwithstanding any statute 12
to the contrary, each Property Valuation Administrator s hall utilize the Commonwealth’s 13
statewide aerial imagery and mapping program, KyFromAbove, as the source for aerial 14
mapping and imagery services used in the administration of property tax assessment 15
functions. All Property Valuation Administrators shall tr ansition to use of the statewide 16
system on or before June 30, 2028. The Commonwealth Office of Technology shall 17
ensure coordination, technical assistance, and implementation support to facilitate 18
compliance with this requirement.]** 19
TOTAL - FINANCE AND ADMINISTRATION CABINET 20
2026-27 2027-28 21
General Fund (Tobacco) 14,350,200 14,130,800 22
General Fund 836,868,100 1,063,471,300 23
Restricted Funds 277,937,300 269,724,700 24
Federal Funds 1,766,600 1,766,600 25
TOTAL 1,130,922,200 1,349,093,400 26
G. HEALTH AND FAMILY SERVICES CABINET 27
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Budget Units 1
1. GENERAL ADMINISTRATION AND PROGRAM SUPPORT 2
2026-27 2027-28 3
General Fund 8,116,000 7,857,600 4
Restricted Funds 80,657,000 79,204,200 5
Federal Funds 68,600,000 69,010,700 6
TOTAL 157,373,000 156,072,500 7
(1) Human Service Transportation Delivery: Notwithstanding KRS 8
281.010(28), the Kentucky Works Program shall not participate in the Human Service 9
Transportation Delivery Program or the Coordinated Transportation Advisory 10
Committee. 11
(2) Federally Funded Positions: Notwithstanding KRS 18A.010(2) and any 12
provisions of this Act to the contrary, direct service units of the Office of Inspector 13
General, Department for Income Support, Office for Children with Special Health Care 14
Needs, Department for Community Based Services, Department for Behavioral Health, 15
Developmental and Intellectual Disabilities, Department for Family Resource Centers 16
and Volunteer Services, Department for Aging and Independent Living, and the 17
Department for Public Health s hall be authorized to establish and fill such positions that 18
are 100 percent federally funded for salary and fringe benefits. 19
(3) Special Olympics: Included in the above General Fund appropriation is 20
$144,000 in fiscal year 2026 -2027 and $139,500 in fiscal year 2027-2028 to support the 21
operations of Special Olympics. 22
(4) Office of Medical Cannabis: Included in the above Restricted Funds 23
appropriation is $7,140,800 in each fiscal year to support the operations of the Office of 24
Medical Cannabis. The Office ma y increase fees as necessary to ensure continued 25
operation and functions. 26
(5) Parkinson’s Disease Registry: Included in the above appropriations is 27
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sufficient funding to implement and carry out the provisions of 2025 Ky. Acts ch. 85. 1
2. MEDICAID SERVICES 2
a. Medicaid Administration 3
2026-27 2027-28 4
General Fund 82,619,300 74,094,600 5
Restricted Funds 34,129,700 32,706,900 6
Federal Funds 241,290,600 224,326,100 7
TOTAL 358,039,600 331,127,600 8
(1) Transfer of Excess Administrative Funds for Medicaid Benefits: If any 9
portion of the above General Fund appropriation in either fiscal year is deemed to be in 10
excess of the necessary expenses for administration of the Department for Medicaid 11
Services, the amount may be used for Medicaid Benefits in accordance with statutes 12
governing the functions and activities of the Department for Medicaid Services. In no 13
instance shall these excess funds be used without prior written approval of the State 14
Budget Director to: 15
(a) Establish a new program; 16
(b) Expand the services of an existing program; or 17
(c) Increase rates or payment levels in an existing program. 18
Any transfer authorized under this subsection shall be approved by the Secretary of 19
the Finance and Administration Cabinet upon recommendation of the State Budget 20
Director. 21
(2) H.R. 1 - Community Engagement Program Implementation: Included in 22
the above appropriations is $8,137,900 in General Fund, $700,000 in Restricted Funds, 23
and $26,663,700 in Federal Funds in fiscal year 2026 -2027 and $1,532,900 in General 24
Fund and $9,498,700 in Federal Funds in fiscal year 2027 -2028 to support 25
implementation of a community engagement program and other needs as required by 26
House Resolution 1, Pub. L. No. 119 -21. The Cabinet for Health and Family Services 27
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shall expend any federal grant funding received to assist with implementation activities 1
prior to expending the funds appropriated above. 2
b. Medicaid Benefits 3
2025-26 2026-27 2027-28 4
General Fund -0- 3,009,535,200 3,014,808,900 5
Restricted Funds 167,183,800 2,322,812,600 2,251,485,200 6
Federal Funds 405,900,000 18,277,466,700 18,253,375,400 7
TOTAL 573,083,800 23,609,814,500 23,519,669,500 8
(1) Intergovernmental Transfers (IGTs): Any funds received through an 9
Intergovernmental Transfer (IGT) agreement bet ween the Department for Medicaid 10
Services and other governmental entities, in accordance with a federally approved State 11
Plan amendment, shall be used to provide for the health and welfare of the citizens of the 12
Commonwealth through the provision of Medica id Benefits. Revenues from IGTs are 13
contingent upon agreement by the parties, including but not limited to the Cabinet for 14
Health and Family Services, Department for Medicaid Services, and the appropriate 15
government entity. The Secretary of the Cabinet for Health and Family Services shall 16
make the appropriate interim appropriations increase requests pursuant to KRS 48.630. 17
(2) Medicaid Benefits Budget Deficit: If Medicaid Benefits expenditures are 18
projected to exceed available funds, the Secretary of the Ca binet for Health and Family 19
Services may recommend and implement that reimbursement rates, optional services, 20
eligibles, or programs be reduced or maintained at levels existing at the time of the 21
projected deficit in order to avoid a budget deficit. The pr ojected deficit shall be 22
confirmed and approved by the Office of State Budget Director. No rate, service, eligible, 23
or program reductions shall be implemented by the Cabinet for Health and Family 24
Services without prior written notice of such action to the Interim Joint Committee on 25
Appropriations and Revenue and the State Budget Director. Such actions taken by the 26
Cabinet for Health and Family Services shall be reported, upon request, at the next 27
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meeting of the Interim Joint Committee on Appropriations and Revenue. 1
(3) Disproportionate Share Hospital (DSH) Program: Hospitals shall report 2
the uncompensated care for which, under federal law, the hospital is eligible to receive 3
disproportionate share payments. Disproportionate share payments shall equal the 4
maximum amounts established under federal law. The Department for Medicaid Services 5
shall compile for each fiscal year a report on the total amount of disproportionate share 6
payments made to hospitals. The report shall identify the hospital receiving the DSH 7
payment, the amount of the payment, and the fund source of the payment. The report 8
shall be submitted to the Interim Joint Committee on Appropriations and Revenue and 9
the Medicaid Oversight and Advisory Board by November 15 of each fiscal year. 10
(4) Hospital Indigent Patient Billing: Hospitals shall not bill patients for 11
services if the services have been reported to the Cabinet and the hospital has received 12
disproportionate share payments for the specific services. 13
(5) Provider Tax Information: Any provider who posts a sign or includes 14
information on customer receipts or any material distributed for public consumption 15
indicating that it has paid provider tax shall also post, in the same size typeset as the 16
provider tax information, the amount of payment received from the Department for 17
Medicaid Services during the same period the provider tax was paid. Providers who fail 18
to meet this requirement shall be excluded from the Disproportionate Share Hospital and 19
Medicaid Programs. The Cabinet for Health and Family Services shall include this 20
provision in facilities' annual licensure inspections. 21
(6) Critical Access Hospitals: Beginning on the effective date of this Act 22
through June 30, 2028, no acute care hospital shall convert to a critical access hospital 23
unless the hospital has either received funding for a feasibility stu dy from the Kentucky 24
Office of Rural Health or filed a written request by January 1, 2026, with the Kentucky 25
Office of Rural Health requesting funding for conducting a feasibility study. 26
(7) Appeals: An appeal from denial of a service or services provided by a 27
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Medicaid managed care organization for medical necessity, or denial, limitation, or 1
termination of a health care service in a case involving a medical or surgical specialty or 2
subspecialty, shall, upon request of the recipient, authorized person, or p rovider, include 3
a review by a board -eligible or board -certified physician in the appropriate specialty or 4
subspecialty area; except in the case of a health care service rendered by a chiropractor or 5
optometrist, for which the denial shall be made respecti vely by a chiropractor or 6
optometrist duly licensed in Kentucky as specified in KRS 304.17A -607(1)(b). The 7
physician reviewer shall not have participated in the initial review and denial of service 8
and shall not be the provider of the service or services under consideration in the appeal. 9
(8) Medicaid Prescription Benefits Reporting: Notwithstanding KRS 205.647, 10
the Department for Medicaid Services shall submit a report to the Interim Joint 11
Committee on Appropriations and Revenue and the Medicaid Oversight and Advisory 12
Board by October 31 of each fiscal year on the dispensing of prescription medications to 13
persons eligible under KRS 205.560. The report shall include: 14
(a) The total Medicaid dollars paid to the state pharmacy benefit manager by a 15
managed care organization; 16
(b) The total amount of Medicaid dollars paid to the state pharmacy benefit 17
manager by a managed care organization which were not subsequently paid to a 18
pharmacy licensed in Kentucky; 19
(c) The average reimbursement by drug ingredient cost, dispensing fee, and any 20
other fee paid by the state pharmacy benefit manager to licensed pharmacies with which 21
the state pharmacy benefit manager shares common ownership, management, or control; 22
or which a re owned, managed, or controlled by any of the state pharmacy benefit 23
manager's management companies, parent companies, subsidiary companies, jointly held 24
companies, or companies otherwise affiliated by a common owner, manager, or holding 25
company; or which share any common members on the board of directors; or which share 26
managers in common; 27
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(d) The average reimbursement by drug ingredient cost, dispensing fee, or any 1
other fee paid by the state pharmacy benefit manager to pharmacies licensed in Kentucky 2
which operate 10 locations, 10 or fewer locations, or 10 or more locations; and 3
(e) All common ownership, management, common members of a board of 4
directors, shared managers, or control of the state pharmacy benefit manager, or any of 5
the state pharmacy bene fit manager's management companies, parent companies, 6
subsidiary companies, jointly held companies, or companies otherwise affiliated by a 7
common owner, manager, or holding company with any managed care organization 8
contracted to administer Kentucky Medica id benefits, any entity which contracts on 9
behalf of a pharmacy, or any pharmacy services administration organization, or any 10
common ownership management, common members of a board of directors, shared 11
managers, or control of a pharmacy services administra tion organization that is 12
contracted with the state pharmacy benefit manager, with any drug wholesaler or 13
distributor or any of the pharmacy services administration organizations, management 14
companies, parent companies, subsidiary companies, jointly held c ompanies, or 15
companies otherwise affiliated by a common owner, common members of a board of 16
directors, manager, or holding company. 17
(9) Kentucky Access Fund: Notwithstanding KRS 304.17B -021, funds are 18
transferred from this source to Medicaid Benefits in each fiscal year. 19
(10) Michelle P. Waiver Slots: Included in the above appropriations is $1,064,700 20
in General Fund and $2,484,300 in Federal Funds in fiscal year 2026 -2027 to support 65 21
additional slots and $1,801,800 in General Fund and $4,204,200 in Feder al Funds in 22
fiscal year 2027-2028 to support 45 additional slots for a total of 110 slots over the 2026 -23
2028 fiscal biennium. 24
(11) Supports for Community Living Waiver Slots: Included in the above 25
appropriations is $3,091,500 in General Fund and $7,213,500 in Federal Funds in fiscal 26
year 2026 -2027 to support 90 additional slots and $4,637,300 in General Fund and 27
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$10,820,300 in Federal Funds in fiscal year 2027-2028 to support 45 additional slots for a 1
total of 135 slots over the 2026-2028 fiscal biennium. 2
(12) Home and Community Based Waiver Slots: Included in the above 3
appropriations is $1,404,200 in General Fund and $3,276,400 in Federal Funds in fiscal 4
year 2026 -2027 to support 115 additional slots and $1,953,600 in General Fund and 5
$4,558,400 in Federal Funds in fiscal year 2027 -2028 to support 45 additional slots for a 6
total of 160 slots over the 2026-2028 fiscal biennium. 7
(13) Medicaid Benefits Program Support: Included in the above appropriation is 8
$55,983,800 in Restricted Funds in fiscal year 2025-2026 to support program needs. 9
(14) Certified Community Behavioral Health Clinics (CCBHC): Included in 10
the above General Fund appropriation is $2,441,400 in fiscal year 2027 -2028 to maintain 11
services at the existing clinics participating in the CCBHC demonst ration program, of 12
this amount $1,000,000 is a one-time allocation. 13
(15) Pharmacist Payment Parity: Included in the above General Fund 14
appropriation is $128,100 in fiscal year 2026 -2027 to support the costs of administrative 15
activities, including creation of a new pharmacist provider type for implementation of 16
pharmacist payment parity in the Kentucky Medicaid and the Kentucky Children’s 17
Health Insurance Programs. Reimbursement for clinical services performed by 18
pharmacists within their scope of practice sh all be paid at a rate no less than the rate paid 19
to other nonphysician practitioners for the delivery of similar services. The Department 20
for Medicaid Services shall submit a report on the implementation of pharmacist payment 21
parity within the Medicaid Pro gram including a timeline of activities, expenditures 22
related to any required system updates and other administrative activities undertaken, and 23
expenditures associated with coverage of pharmacists’ services by fund source by 24
November 1 of each fiscal year to the Interim Joint Committee on Appropriations and 25
Revenue. 26
(16) MCO Payments: The Department for Medicaid Services or the Finance and 27
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Administration Cabinet shall make 12 monthly payments in each fiscal year to Medicaid 1
managed care vendors contracted to provide services for the Medicaid program. All 2
payments due during a fiscal year shall be issued within that same fiscal year and shall 3
not be deferred, delayed, or transferred to a subsequent fiscal year. 4
(17) Medicaid Service Reductions: If it is deem ed necessary to make reductions 5
in Medicaid services, a priority shall be made to reduce services not expressly authorized 6
by the General Assembly. 7
(18) Substance Use Disorder Programs: Included in the above appropriations is 8
sufficient funding to implement and carry out the provisions of 2024 Ky. Acts ch. 68. 9
(19) Behavioral and Mental Health Services: Included in the above 10
appropriations is sufficient funding to implement and carry out the provisions of 2025 11
Ky. Acts ch. 107. 12
(20) Medicaid Managed Care Or ganization Contracts: Included in the above 13
appropriations is sufficient funding to implement and carry out the provisions of 2025 14
Ky. Acts ch. 110. 15
(21) MCO Payments Reduction: Notwithstanding any statute to the contrary, the 16
Department for Medicaid Servi ces or the Finance and Administration Cabinet shall 17
effectuate a 2.50 percent reduction in payments in Plan Year 2028 to Medicaid managed 18
care vendors contracted to provide services for the Medicaid Program. No reduction shall 19
be made in provider reimburse ment rates. Any savings realized from the reduction in 20
MCO payments shall be used to increase reimbursement rates for services provided to 21
Medicaid fee -for-service (FFS) beneficiaries. All state directed payment programs 22
approved by the Centers for Medicar e and Medicaid Services (CMS) pursuant to 42 23
C.F.R. sec. 438.6 shall be excluded from the above payment reduction. 24
(22) Community Intervener Services: The Department for Medicaid Services 25
shall promulgate any necessary administrative regulations or amend e xisting waiver 26
service definitions or policy to facilitate access to intervener services for deaf -blind 27
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participants within the Michelle P. waiver program. These services shall be designed to 1
support the independence and community integration of eligible participants. 2
(23) Appalachian Regional Hospital: Included in the above appropriations is 3
$14,600,000 in General Fund, $6,800,000 in Restricted Funds, and $85,000,000 in 4
Federal Funds in each fiscal year to support contracted psychiatric services provided 5
within Hospital District IV under KRS 210.300 and the Kentucky Community Access 6
and Rural Engagement (KCARE) managed care incentive program operated by the 7
Appalachian Regional Hospital as authorized under 42 C.F.R. sec. 438.6(b)(2). The 8
Department for Medicaid Services shall seek federal approval of the KCARE program by 9
the earlier of its next managed care contract submission to the Centers for Medicare and 10
Medicaid Services (CMS) or within 90 days upon enactment of this legislation. The 11
Department shall sp ecify a contract effective date of July 1, 2026, when submitting the 12
application for federal approval of the KCARE Program. The General Assembly 13
encourages the Appalachian Regional Hospital KCARE Program to collaborate to the 14
fullest extent possible with o ther mental health providers in the region as it endeavors to 15
expand and improve access to the behavioral health system of eastern Kentucky. 16
(24) Medicaid State Directed Payments Program: Included in the above 17
appropriations is an additional $76,500,000 in Restricted Funds and $305,900,000 in 18
Federal Funds in fiscal year 2025 -2026, $153,000,000 in Restricted Funds and 19
$611,700,000 in Federal Funds in fiscal year 2026 -2027 and $145,300,000 in Restricted 20
Funds and $581,000,000 in Federal Funds in fiscal year 2027-2028 to support Medicaid 21
state directed payments. 22
(25) Dental Services Reimbursement Rebasing Efforts: The General Assembly 23
recognizes the importance of oral health in ensuring an individual’s overall wellbeing and 24
the need to address current reimburs ement rates for dental services in the Kentucky 25
Medicaid Program. Notwithstanding KRS 304.2 -400(2), included in the above Restricted 26
Funds appropriation is $8,000,000 in each fiscal year and included in the above Federal 27
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Funds appropriation is $31,600,000 in each fiscal year to support an increase in 1
reimbursement rates for dental services provided to Medicaid eligible individuals. The 2
Technical Advisory Committee on Dental Care, authorized pursuant to KRS 3
205.590(1)(c), shall provide recommendations to the Cabinet for Health and Family 4
Services regarding the dental procedures to be given priority for increased Medicaid 5
reimbursement rates. 6
(26) Hospital-Based Ventilator Dependent Facilities: Included in the above 7
appropriations is an additional $2,700,000 i n General Fund and $6,300,000 in Federal 8
Funds in each fiscal year to support an increase in the all -inclusive daily payment rate for 9
hospital-based ventilator dependent facilities that operate a distinct part ventilator unit 10
with more than 100 beds and a dedicated pediatric unit with 12 or more beds. It is the 11
intent of the 2026 General Assembly that these funds be used to increase the all -inclusive 12
daily payment rate from $982 to $1,220, effective January 1, 2026. Reimbursement for 13
drugs shall be establis hed pursuant to 907 KAR Chapter 23 and shall not be included in 14
calculation of the all-inclusive daily payment rate. The Department for Medicaid Services 15
shall amend 907 KAR 1:025(6) and seek any necessary federal approval to implement 16
this rate increase. 17
(27) Medicaid Cost Settlements: Included in the above appropriations is an 18
additional $28,700,000 in Restricted Funds and $86,000,000 in Federal Funds in fiscal 19
year 2025 -2026 to support Medicaid cost settlements related to the Department for 20
Community Bas ed Services and the Department for Behavioral Health, Developmental 21
and Intellectual Disabilities within the Cabinet for Health and Family Services. 22
(28) Medicaid DSH Payments: Included in the above appropriations is an 23
additional $6,000,000 in Restricted Funds and $14,000,000 in Federal Funds in fiscal 24
year 2025 -2026, $3,000,000 in Restricted Funds and $4,000,000 in Federal Funds in 25
fiscal year 2026 -2027, and $3,000,000 in Restricted Funds and $4,000,000 in Federal 26
Funds in fiscal year 2027 -2028 to support Medicaid DSH payments related to the 27
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Department for Behavioral Health, Developmental and Intellectual Disabilities within the 1
Cabinet for Health and Family Services. 2
TOTAL - MEDICAID SERVICES 3
2025-26 2026-27 2027-28 4
General Fund -0- 3,092,154,500 3,088,903,500 5
Restricted Funds 167,183,800 2,356,942,300 2,284,192,100 6
Federal Funds 405,900,000 18,518,757,300 18,477,701,500 7
TOTAL 573,083,800 23,967,854,100 23,850,797,100 8
3. BEHAVIORAL HEALTH, DEVELOPMENTAL AND INTELLECTUAL 9
DISABILITIES 10
2026-27 2027-28 11
General Fund (Tobacco) 1,152,500 1,065,100 12
General Fund 191,048,300 189,372,200 13
Restricted Funds 268,266,000 269,350,900 14
Federal Funds 98,751,200 98,921,400 15
TOTAL 559,218,000 558,709,600 16
(1) Disproportionate Share Hospital Funds: Pursuant to KRS 205.640(3)(a)2., 17
mental health disproportionate share funds are budgeted at the maximum amounts 18
permitted by Section 1923(h) of the Social Security Act. Upo n publication in the Federal 19
Register of the Annual Institutions for Mental Disease (IMD) Disproportionate Share 20
Hospital (DSH) limit, 92.3 percent of the federal IMD DSH limit goes to the state -21
operated mental hospitals. If there are remaining funds withi n the psychiatric pool after 22
all private psychiatric hospitals reach their hospital -specific DSH limit, state mental 23
hospitals may exceed the 92.3 percent limit but may not exceed their hospital -specific 24
DSH limit. 25
(2) Lease Payments for Eastern State Hosp ital: Included in the above General 26
Fund appropriation is $9,807,300 in fiscal year 2026 -2027 and $9,808,000 in fiscal year 27
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2027-2028 to make lease payments to the Lexington -Fayette Urban County Government 1
to retire its debt for the construction of the new facility. 2
(3) Tobacco Settlement Funds: Included in the above General Fund (Tobacco) 3
appropriation is $1,152,500 in fiscal year 2026 -2027 and $1,065,100 in fiscal year 2027 -4
2028 for substance abuse prevention and treatment for pregnant women with a histor y of 5
substance abuse problems. 6
(4) Substance Abuse Funding Report: The Department for Behavioral Health, 7
Developmental and Intellectual Disabilities shall compile for each fiscal year a report on 8
the funding received by the Cabinet for Health and Family Se rvices to provide substance 9
abuse prevention, treatment, and recovery services in the Commonwealth. The report 10
shall include the amount, source, and duration of the funding, the purpose of the funding, 11
the number of individuals served, and any available in formation on outcomes 12
demonstrated as a result of the funding provided for substance abuse prevention, 13
treatment, and recovery services. The report shall be submitted to the Legislative 14
Research Commission, Office of Budget Review, by September 1 of each fiscal year. 15
(5) The Healing Place: Included in the above General Fund appropriation is 16
$1,440,000 in fiscal year 2026 -2027 and $1,395,000 in fiscal year 2027 -2028 to support 17
direct services to clients provided by The Healing Place. 18
(6) Residential Faciliti es Services: Included in the above General Fund 19
appropriation is $20,000,000 in each fiscal year to support increased costs related to 20
staffing and an increased patient census in state run psychiatric and ICF/ID facilities. 21
(7) Lee Specialty Clinic: Included in the above General Fund appropriation is 22
$720,000 in fiscal year 2026 -2027 and $697,500 in fiscal year 2027 -2028 to support 23
specialty medical services for individuals with moderate developmental and intellectual 24
disabilities living in residential and community settings. 25
(8) Barren River Area Development District: Notwithstanding KRS 45.229, 26
any unexpended funds authorized in 2024 Ky. Acts ch. 173, sec. 1, (187) to establish a 27
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regional substance use disorder services pilot program shall not lapse and sh all carry 1
forward. 2
4. PUBLIC HEALTH 3
2026-27 2027-28 4
General Fund (Tobacco) 9,379,700 8,668,100 5
General Fund 84,190,200 83,154,700 6
Restricted Funds 148,707,500 152,411,600 7
Federal Funds 510,150,900 499,317,300 8
TOTAL 752,428,300 743,551,700 9
(1) Tobacco Settlement Funds: Included in the above General Fund (Tobacco) 10
appropriation is $5,301,500 in fiscal year 2026 -2027 and $4,899,400 in fiscal year 2027 -11
2028 for the Health Access Nurturing Development Services (HANDS) Program, 12
$620,600 in fiscal year 2026-2027 and $573,500 in fiscal year 2027-2028 for the Healthy 13
Start Initiatives, $620,600 in fiscal year 2026 -2027 and $573,500 in fiscal year 2027 -14
2028 for Early Childhood Mental Health, $620,600 in fiscal year 2026 -2027 for Early 15
Childhood Oral Health, $443,300 in fiscal year 2026 -2027 and $983,100 in fiscal year 16
2027-2028 for the Lung Cancer Screening Program, and $1,773,100 in fiscal year 2026 -17
2027 and $1,638,600 in fiscal year 2027 -2028 for Smoking Cessation. Included in the 18
above Restricted Funds appropriation is $573,500 in fiscal year 2027 -2028 from interest 19
income from the Kentucky Healthcare Improvement Fund for Early Childhood Oral 20
Health. 21
(2) Local and District Health Department Fees: Notwithstanding KRS 211.170 22
and 211.186, lo cal and district health departments shall retain 90 percent of the fees 23
collected for delivering foundational public health program services to fund the costs of 24
operations, services, and the employer contributions for the Kentucky Employees 25
Retirement System. 26
(3) Kentucky Pediatric Cancer Research Trust Fund: Included in the above 27
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General Fund appropriation is $5,000,000 in each fiscal year to the Kentucky Pediatric 1
Cancer Research Trust Fund for general pediatric cancer research and support of 2
expansion of clinical trials at the University of Kentucky and the University of Louisville. 3
(4) Lung Cancer Screening MCO: Each Medicaid Managed Care Organization 4
that has a participating contract with the Commonwealth for the next contract renewal 5
cycle shall provi de services for lung cancer screenings, which may include genetic 6
prescreen testing. 7
(5) Area Health Education Centers: Included in the above General Fund 8
appropriation is $2,400,000 in fiscal year 2026 -2027 and $2,325,000 in fiscal year 2027 -9
2028 to support the operations of the Commonwealth’s eight regional Area Health 10
Education Centers. 11
(6) Rural Health Transformation Fu nd: Included in the above Federal Funds 12
appropriation is $212,905,600 in each fiscal year from the Rural Health Transformation 13
Fund. The Cabinet for Health and Family Services shall prepare a report, including but 14
not limited to expenditures from the Rural Health Transformation Fund, a description of 15
the activities and methods being implemented within each identified area of focus, a list 16
delineating subrecipients of grant funds, and any entities being contracted to perform 17
services. The Cabinet shall submi t this report on a quarterly basis to the Medicaid 18
Oversight and Advisory Board beginning November 1, 2026. 19
(7) Kentucky Poison Control Center: Included in the above General Fund 20
appropriation is $1,000,000 in each fiscal year to support the Kentucky Poiso n Control 21
Center. 22
(8) Kentucky Colon Cancer Screening Program: Included in the above 23
General Fund appropriation is $480,000 in fiscal year 2026 -2027 and $465,000 in fiscal 24
year 2027-2028 to support the Kentucky Colon Cancer Screening Program. 25
(9) Vital Sta tistics: Included in the above Restricted Funds appropriation is 26
$1,640,800 in each fiscal year to support increased operating costs within the Office of 27
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Vital Statistics. 1
(10) Drug and Supplement Testing: Included in the above Restricted Funds 2
appropriation is $2,000,000 in fiscal year 2026 -2027 and $2,750,000 in fiscal year 2 027-3
2028 to support mandated medical marijuana and edible analysis and testing. 4
(11) Ryan White Program: Included in the above Restricted Funds appropriation 5
is $4,000,000 in fiscal year 2026 -2027 and $6,000,000 in fiscal year 2027 -2028 to 6
support particip ation growth in the Ryan White Program and to address increased 7
medication costs. 8
5. FAMILY RESOURCE CENTERS AND VOLUNTEER SERVICES 9
2026-27 2027-28 10
General Fund 26,617,200 26,660,700 11
Federal Funds 12,568,000 12,577,800 12
TOTAL 39,185,200 39,238,500 13
(1) Family Resource and Youth Services Centers Funds: No more than two 14
percent of the total funds transferred from the Department of Education to the Family 15
Resource and Youth Services Centers, as consistent with KRS 156.496, shall be used for 16
administrative purposes in each fiscal year. 17
6. COMMUNITY BASED SERVICES 18
2026-27 2027-28 19
General Fund (Tobacco) 10,195,200 9,421,900 20
General Fund 746,196,400 751,284,800 21
Restricted Funds 187,229,700 182,967,400 22
Federal Funds 935,267,400 922,672,800 23
TOTAL 1,878,888,700 1,866,346,900 24
(1) Tobacco Settlement Funds: Included in the above General Fund (Tobacco) 25
appropriation is $8,422,100 in fiscal year 2026 -2027 and $7,783,300 in fiscal year 2027 -26
2028 for the Early Childhood Development Program and $1,773,100 in fiscal year 2026 -27
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2027 and $1,638,600 in fiscal year 2027 -2028 for the Early Childhood Adoption and 1
Foster Care Supports Program. 2
(2) Fostering Success: Included in the above General Fund appropriation is 3
$480,000 in fiscal year 20 26-2027 and $465,000 in fiscal year 2027 -2028 to support the 4
Fostering Success Program. 5
(3) Dually Licensed Pediatric Facilities: Included in the above General Fund 6
appropriation is $528,000 in fiscal year 2026-2027 and $511,500 in fiscal year 2027-2028 7
to provide supplemental payments to dually licensed pediatric facilities for emergency 8
shelter services for children. 9
(4) Child Care Assistance Program: Included in the above General Fund 10
appropriation is $10,176,000 in fiscal year 2026-2027 and $9,858,000 in fiscal year 2027-11
2028 to provide services to families at or below 160 percent of the federal poverty level 12
as determined annually by the U.S. Department of Health and Human Services. The 13
Cabinet for Health and Family Services shall submit a report to the Interim Joint 14
Committee on Appropriations and Revenue no later than November 1, 2026, detailing 15
payment timelines to child care providers participating in the Child Care Assistance 16
Program. The report shall include, but not be limited to the average numbe r of calendar 17
days between the receipt of a completed claim and the issuance of payment to the 18
provider; the total number of claims where payment was beyond 30 days from the date of 19
submission; and a detailed justification for any claims exceeding the 30 -day threshold, 20
categorized by administrative, technical, or investigative delays. 21
(5) Personal Care Homes: Included in the above General Fund appropriation is 22
$12,000,000 in each fiscal year to support reimbursements provided to personal care 23
homes. 24
(6) Children's Services Contractors: Notwithstanding KRS Chapter 45A, no 25
contracts awarded for the use and benefit of the Department for Community Based 26
Services shall interfere with the contractor’s freedom of religion as set forth in KRS 27
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446.350. Any such contr acts shall contain a provision allowing a contractor to allow a 1
substitute contractor who is also licensed or approved by the Cabinet to deliver the 2
contracted services if the contractor cannot perform a contracted service because of 3
sincerely held religious beliefs as outlined in KRS 446.350. 4
(7) Victims Advocacy Programs: Included in the above General Fund 5
appropriation is $10,557,700 in each fiscal year for the Children's Advocacy Centers, 6
$13,912,700 in each fiscal year for the Domestic Violence Shelter s, and $7,776,100 in 7
each fiscal year for the Rape Crisis Centers to support operational costs. 8
(8) Employee Child Care Assistance Partnership: Included in the above 9
General Fund appropriation is $1,000,000 in each fiscal year to support the Employee 10
Child Care Assistance Partnership for matching contributions. There shall be a two 11
percent cap on administrative costs for the oversight of this program. Notwithstanding 12
KRS 45.229, any General Fund amounts appropriated for matching contributions in fiscal 13
year 2025-2026 and fiscal year 2026-2027 shall not lapse and shall carry forward. 14
(9) Volunteers of America - Family Recovery Court: Included in the above 15
General Fund appropriation is $480,000 in fiscal year 2026 -2027 and $465,000 in fiscal 16
year 2027 -2028 to support the operations of the Volunteers of America - Family 17
Recovery Court. 18
(10) Family Scholar House: Included in the above Gen eral Fund appropriation is 19
$960,000 in fiscal year 2026 -2027 and $930,000 in fiscal year 2027 -2028 to support the 20
operations of the Family Scholar House. 21
(11) Maryhurst: Included in the above General Fund appropriation is $1,350,000 22
in each fiscal year to provide a reimbursement rate increase for children in the 5 23
Specialized Programs. 24
(12) Foster Care Independent Living: Included in the above General Fund 25
appropriation is $1,920,000 in fiscal year 2026 -2027 and $1,860,000 in fiscal year 2027 -26
2028 for independent living supports to children aging out of the foster care system. 27
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(13) Child Care Assistance Program (CCAP) Initiatives: Included in the above 1
General Fund appropriation is $18,680,000 in fiscal year 2026 -2027 and $18,065,000 in 2
fiscal year 2027-2028 to support the CCAP initiative. 3
The appropriations shall be allocated to the individual programs as follows: 4
(a) $17,240,000 in fiscal year 2026 -2027 and $16,670,000 in fiscal year 2027 -5
2028 to support an income exclusion from eligibility determinations for child care 6
providers; and 7
(b) $1,440,000 in General Fund in fiscal year 2026 -2027 and $1,395,000 in fiscal 8
year 2027 -2028 to support a six -month transition for families no longer eligible for 9
CCAP benefits. 10
(14) Early Childhood Development Scholarship Program: Included in the 11
above General Fund appropriation is $2,400,000 in fiscal year 2026 -2027 and $2,325,000 12
in fiscal year 2027 -2028 to support the Early Childhood Development Scholarship 13
Program. 14
(15) Supplemental Nutrition Assistance Program (SNAP) A dministration: 15
Included in the above General Fund appropriation is $43,500,000 in fiscal year 2026 -16
2027 and $58,000,000 in fiscal year 2027 -2028 to support the increased state share of 17
SNAP administrative cost responsibility from 50 percent to 75 percent, as required by 18
H.R. 1 of the 119th Congress. 19
(16) Adoption Records: Included in the above appropriations is sufficient funding 20
to implement and carry out the provisions of 2024 Ky. Acts ch. 43. 21
(17) Child Care Benefits: Included in the above appropriations is sufficient 22
funding to implement and carry out the provisions of 2024 Ky. Acts ch. 84. 23
(18) Relative and Fictive Kin Caregivers: Included in the above General Fund 24
appropriation is $6,000,000 in each fiscal year** [ to provide sufficient funding for the 25
maintenance of effort necessary to maximize available federal funds to implement the 26
provisions of 2024 Ky. Acts ch. 85] **. Federal funds shall include but are not limited to 27
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funds available through foster care maintenance payments in Title IV -E of the Soc ial 1
Security Act and the Temporary Assistance for Needy Families block grant under Title 2
IV-A of the Social Security Act. 3
Pursuant to KRS 620.142(4), the custodial, permanency, and service options 4
provided to relative and fictive caregivers shall reflect n ationally recognized best 5
practices. The Cabinet for Health and Family Services shall include Title IV -E compliant 6
provisional licensing for relatives and fictive kin through revised administrative 7
regulation (922 KAR) in order to maximize federal funding available for relative or 8
fictive kin foster parent payments. Such provisional licensing shall include provisional 9
approval within five days of placement, immediate satisfaction of all federal safety 10
requirements, a 120 -day window to complete non -safety re quirements (training, home 11
study), and a provisional approval process to qualify these homes for Title IV -E foster 12
care maintenance payment purposes. 13
Pursuant to KRS 620.142(3), within 120 days of receiving temporary custody of a 14
child or upon the occurren ce of a verifiable qualifying event, a relative or fictive kin 15
caregiver may submit a request to the Cabinet for Health and Family Services for the 16
purpose of pursuing a change in custody of the child in his or her care. Upon preliminary 17
approval of the re quest, the Cabinet for Health and Family Services may request that the 18
court place the child in the custody of the Cabinet for the purpose of allowing the relative 19
or fictive kin caregiver to pursue approval as a relative or fictive kin foster parent. Upon 20
placement of the child in the custody of the Cabinet, the relative or fictive kin caregiver 21
shall pursue foster parent approval. 22
For purposes of KRS 620.142(3), a "qualifying event" shall include the death or 23
incapacitation of a caregiver; loss of income due to disability; early or unplanned 24
retirement due to a documented hardship, including medical necessity or employer -25
mandated separation, resulting in a substantial loss of income; loss of a home or 26
employment due to a natural disaster or fire; a change in household structure due to 27
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divorce or legal separation; or a significant change in the child's medical or behavioral 1
health needs requiring substantial caregiver involvement. 2
Nothing in this subsection shall be construed to relieve a child’s biological or legal 3
parents of their continuing statutory and legal duty to support and provide for the child. 4
For any child involved in a juvenile court proceeding who is in state custody or placed by 5
the Cabinet in an out-of-home setting, including but not limited to placement with fictive 6
kin or relatives, the Cabinet shall immediately initiate proceedings to establish a child 7
support order in favor of the Commonwealth and shall take all necessary steps to enforce 8
such order for the duration of the child’s placement or state custody. 9
The Cabinet shall coordinate, as appropriate, with the state agency responsible for 10
child support enforcement to ensure timely establishment, modification, and enforcement 11
of support obligations. Any support collected by the state shal l be applied in accordance 12
with state law for the benefit of the child. 13
Efforts to establish or enforce child support shall not delay permanency planning or 14
placement decisions made in the best interests of the child. 15
(19) Dependency, Neglect, or Abuse of a Child: Included in the above 16
appropriations is sufficient funding to implement and carry out the provisions of 2024 17
Ky. Acts ch. 133 and 144. 18
(20) Truancy: Included in the above appropriations is sufficient funding to 19
implement and carry out the provisions of 2024 Ky. Acts ch. 163. 20
(21) Out of Home Care: Included in the above Restricted Funds appropriation is 21
$22,000,000 in each fiscal year from the Out of Home Care Replacement Fund to 22
maintain existing support for foster care and kinship care programs to enhance 23
specialized services for children with exceptional needs to assist in identifying and 24
securing supportive placements. The Department of Community Based Services shall 25
utilize federal funds from the Temporary Assistance for Needy Families block grant**[ to 26
the fullest extent possible] ** and shall expend any additional available reserves before 27
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expending the Restricted Funds from the Out of Home Care Replacement Fund. The 1
Department shall submit a quarterly report detailing the expenditures and fund sources 2
for all out of home care services beginning November 1, 2026, to the Interim Joint 3
Committee on Appropriations and Revenue. 4
(22) Kentucky United Methodist Children’s Homes: Included in the above 5
General Fund appropriation is $102,100 in fiscal year 2026-2027 to reimburse the 6
Kentucky United Methodist Children’s Homes Independent Living Program for 7
providing therapeutic services to youth in state custody. 8
(23) Sunrise Children’s Services: Included in the above General Fund 9
appropriation is $2,200 in fiscal year 2026 -2027 to reimburse the Sunrise Children’s 10
Services Independent Living Program for providing therapeutic services to youth in state 11
custody. 12
(24) Youth Villages Intercept Program: Included in the above appropriations is 13
$6,378,600 in General Fund and $6,396,400 in Federal Funds in fiscal year 2026 -2027 14
and $7,792,300 in General Fund and $8,997,700 in Federal Funds in fiscal year 2027 -15
2028 for the Youth Villages Intercept Program. 16
7. AGING AND INDEPENDENT LIVING 17
2026-27 2027-28 18
General Fund 49,046,900 47,865,500 19
Restricted Funds 4,069,800 4,030,300 20
Federal Funds 38,575,700 38,625,600 21
TOTAL 91,692,400 90,521,400 22
(1) Local Match Requirements: Notwithstanding KRS 205.460, entities 23
contracting with the Cabinet for Health and Family Services to provide essential services 24
under KRS 205.455 and 205.460 shall provide local match equal to or greater than the 25
amount in effect during fiscal year 2025-2026. Local match may include any combination 26
of materials, commodities, transportation, office space, personal services, or other types 27
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of facility services or funds. The Secretary of the Cabinet for Health and Family Services 1
shall prescribe the procedures to certify the local match compliance. 2
(2) Hart-Supported Living Program: Included in the above General Fund 3
appropriation is $6,288,100 in each fiscal year to support the Hart -Supported Living 4
Program. 5
TOTAL - HEALTH AND FAMILY SERVICES CABINET 6
2025-26 2026-27 2027-28 7
General Fund (Tobacco) -0- 20,727,400 19,155,100 8
General Fund -0- 4,197,369,500 4,195,099,000 9
Restricted Funds 167,183,800 3,045,872,300 2,972,156,500 10
Federal Funds 405,900,000 20,182,670,500 20,118,827,100 11
TOTAL 573,083,800 27,446,639,700 27,305,237,700 12
H. JUSTICE AND PUBLIC SAFETY CABINET 13
Budget Units 14
1. JUSTICE ADMINISTRATION 15
2026-27 2027-28 16
General Fund (Tobacco) 2,881,200 2,662,700 17
General Fund 44,784,200 45,448,000 18
Restricted Funds 3,241,300 2,998,900 19
Federal Funds 34,895,200 34,883,700 20
TOTAL 85,801,900 85,993,300 21
(1) Operation UNITE: (a) Included in the above General Fund appropriation 22
is $1,440,000 in fiscal year 2026 -2027 and $1,395,000 in fiscal year 2027 -2028 for the 23
Operation UNITE Program. 24
(b) For the periods ending June 30, 2026, and June 30, 2027, the Secretary of the 25
Justice and Public Safety Cabinet, in coordination with the Chief Executive Officer of 26
Operation UNITE, shall prepare reports detailing for what purpose and function the funds 27
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were utilized. The reports shall be submitted to the Interim Joint Committee on 1
Appropriations and Revenue by September 1 of each fiscal year. 2
(2) Office of Drug Control Policy: Included in the above General Fund 3
(Tobacco) appropriation is $2,6 59,600 in fiscal year 2026 -2027 and $2,457,900 in fiscal 4
year 2027-2028 for the Office of Drug Control Policy. 5
(3) Court-Appointed Special Advocate Funding: Included in the above General 6
Fund appropriation is $3,000,000 in each fiscal year for grants to su pport Court -7
Appointed Special Advocate (CASA) funding programs. No administrative costs shall be 8
paid from this appropriation. 9
(4) Restorative Justice: Included in the above General Fund (Tobacco) 10
appropriation is $221,600 in fiscal year 2026-2027 and $204,800 in fiscal year 2027-2028 11
to support the Restorative Justice Program administered by the Volunteers of America. 12
(5) Northern Kentucky Regional Medical Examiner's Office: Notwithstanding 13
KRS 45.229, any unexpended funds from the $1,800,000 authorized in 2022 Ky. Acts ch. 14
199, Part I, H., 1., (11) to reestablish the Northern Kentucky Regional Medical 15
Examiners Office shall not lapse and shall carry forward. 16
(6) Substance Abuse Treatment Programs: The Secretary of the Justice and 17
Public Safety Cabinet shal l compile for each fiscal year a report on funding received by 18
the Cabinet to provide substance abuse treatment, prevention, and recovery programs in 19
the Commonwealth. The report shall include the amount, source, and duration of the 20
funding, the purpose of the funding, the number of individuals served, and any available 21
information on program outcomes. The Secretary shall submit the report to the Interim 22
Joint Committee on Appropriations and Revenue by September 1 of each year. 23
(7) Rocket Docket Program: Notwithstanding KRS 196.288(5)(b)8., included in 24
the above General Fund appropriation is $1,940,000 in fiscal year 2026 -2027 and 25
$1,860,000 in fiscal year 2027 -2028, which shall be allocated annually in quarterly 26
payments, to support the Rocket Docket Program at the Prosecutors Advisory Council. 27
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(8) Northern Kentucky Medical Examiner's Office: Included in the above 1
General Fund appropriation is $1,618,700 in fiscal year 2027-2028 to support the staffing 2
of the Northern Kentucky Medical Examiner's Office. 3
2. CRIMINAL JUSTICE TRAINING 4
2026-27 2027-28 5
Restricted Funds 140,458,200 129,117,900 6
(1) Kentucky Law Enforcement Foundation Program Fund: Included in the 7
above Restricted Funds appropriation is $136,842,500 in fiscal year 2026 -2027 and 8
$141,362,800 in fiscal year 2027 -2028 for the Kentucky Law Enforcement Foundation 9
Program Fund. 10
(2) Training Incentive Payments: Notwithstanding KRS 15.460(1) and 11
15.420(2)(a)1.a., included in the above Restricted Funds appropriation is $4,653 in fiscal 12
year 2026 -2027 and $4,746 in fiscal year 2027 -2028 for each full -time participant for 13
training incentive payments, and $2,327 in fiscal year 2026 -2027 and $2,3 73 in fiscal 14
year 2027 -2028 for each part -time participant for training incentive payments. KRS 15
15.460(1)(b) to (f) shall remain applicable, except that the administrative expense 16
reimbursement cap under KRS 15.460(1)(c)3. shall not exceed $1,000,000. 17
(3) Administrative Reimbursement: Notwithstanding KRS 15.450(3), the 18
Department of Criminal Justice Training shall not receive reimbursement for the salaries 19
and other costs of administering the fund, to include the Kentucky Law Enforcement 20
Council operations and expenses, Peace Officers Professional Standards Office, attorney 21
positions in Justice Administration, the Professional Development and Wellness Branch, 22
Office of the State School Security Marshal, Office of Kentucky Law Enforcement 23
Council Support, deb t service, capital outlay, and Department personnel costs and 24
expenses in excess of $42,551,900 in fiscal year 2026 -2027 and $43,000,700 in fiscal 25
year 2027-2028. The Department shall submit a report detailing reimbursed expenditures 26
for the prior fiscal y ear to the Interim Joint Committee on Appropriations and Revenue 27
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by August 1 of each fiscal year. 1
(4) Criminal Justice Council: Pursuant to KRS 15.410 to 15.518, the 2
Department of Criminal Justice Training shall not transfer funds from the Kentucky Law 3
Enforcement Foundation Program Fund to support the Criminal Justice Council. 4
(5) Kentucky Law Enforcement Council Funding: Notwithstanding KRS 5
15.450 and any other statute to the contrary, funding to support the operations of the 6
Kentucky Law Enforcement Coun cil shall not exceed $622,900 in fiscal year 2026 -2027 7
and $603,500 in fiscal year 2027-2028. 8
(6) Operating Cost Increases: Included in the above Restricted Funds 9
appropriation is $864,100 in fiscal year 2026-2027 and $764,100 in fiscal year 2027-2028 10
to support various operating cost increases. 11
(7) Additional Staff: Included in the above Restricted Funds appropriation is 12
$106,100 in fiscal year 2026 -2027 and $110,900 in fiscal year 2027 -2028 for additional 13
staff. 14
(8) Middletown Firing Range: Included in th e above Restricted Funds 15
appropriation is $15,000,000 in fiscal year 2026 -2027 and $10,000,000 in fiscal year 16
2027-2028 to be paid to the city of Middletown to construct a firing range for statewide 17
law enforcement training use. 18
(9) Louisville Driving Trac k: Included in the above Restricted Funds 19
appropriation is $5,000,000 in fiscal year 2026-2027 to be paid to the city of Louisville to 20
construct a driving track for statewide law enforcement training use. 21
3. JUVENILE JUSTICE 22
2026-27 2027-28 23
General Fund 173,572,500 182,026,800 24
Restricted Funds 13,731,900 13,892,100 25
Federal Funds 10,951,700 10,951,700 26
TOTAL 198,256,100 206,870,600 27
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(1) Evidence-Based Programming: The Department of Juvenile Justice shall 1
prepare a report detailing expend itures for evidence-based programming provided by the 2
Department, as well as the number of youth served by each program, the number of filled 3
positions providing services and the number of program vacancies, the number of youth 4
on waitlists for services, a nd any other key performance indicators deemed appropriate 5
by the Department. The Department of Juvenile Justice shall submit this report on a 6
quarterly basis to the Interim Joint Committee on Appropriations and Revenue and the 7
Juvenile Justice Oversight Council beginning November 1, 2026. 8
(2) Louisville Detention Center Renovation: The Department of Juvenile 9
Justice shall submit a report to the Interim Joint Committee on Appropriations and 10
Revenue by September 1, 2026, detailing the status, progress, and current expenditures of 11
the Renovate Louisville Detention Center project authorized in 2024 Ky. Acts ch. 175, 12
Part II, H., 3., 002. 13
(3) Juvenile High -Acuity Mental Health Treatment Services: (a)14
Notwithstanding any statute to the contrary, The Justice and P ublic Safety Cabinet, 15
in coordination with the Department of Juvenile Justice, shall, no later than July 1, 2026, 16
issue a Request for Information to solicit input and assess feasibility regarding the 17
planning, development, and delivery of high -acuity mental health treatment services for 18
juveniles, including the potential construction of a treatment facility. In reviewing 19
responses, the Cabinet shall consider only healthcare providers that qualify for enhanced 20
Medicaid reimbursement, including those eligible for a prospective payment system rate, 21
an all-inclusive rate, or an equivalent reimbursement methodology. 22
(b) The Request for Information shall require submissions to address, at a 23
minimum, the following: evidence -based practices for high acuity behavior al health 24
services; demonstrated expertise and operational capacity; cost -effectiveness and long -25
term sustainability; the proposed service delivery model; partnership structure and 26
accountability measures; and plans for data collection, performance metrics, and outcome 27
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evaluation. 1
(c) The Cabinet shall submit a report by November 1, 2026, to the Interim Joint 2
Committee on Appropriations and Revenue, including a summary of all responses to the 3
Request for Information, an overview of the evaluation process, a nd any resulting 4
findings or recommendations. It is the intent of the General Assembly to authorize the 5
use of funds from the Budget Reserve Trust Fund if the Request for Information results in 6
a viable project, including a defined cost estimate and a feas ible timeline for the 7
implementation of the project for the delivery of services. 8
(4) Jefferson Detention Facilities' Personnel and Operating: Included in the 9
above General Fund appropriation is $6,515,300 in fiscal year 2026 -2027 and 10
$12,019,800 in fiscal year 2027-2028 to support the Jefferson Regional Detention Center 11
in Lyndon and the Jefferson County Youth Detention Center in downtown Louisville. 12
(5) Design-Build Project Delivery Method: Notwithstanding any statute to the 13
contrary, the design-build project delivery method, as defined in KRS 45A.030(13), may 14
be used to maximize cost savings for projects authorized in Part II, H., 3., 001. of this 15
Act. 16
4. STATE POLICE 17
2026-27 2027-28 18
General Fund 244,138,500 250,930,200 19
Restricted Funds 35,475,300 34,828,700 20
Federal Funds 23,274,500 23,216,300 21
Road Fund 55,582,600 57,940,100 22
TOTAL 358,470,900 366,915,300 23
(1) Call to Extraordinary Duty: There is appropriated from the General Fund to 24
the Department of Kentu cky State Police, subject to the conditions and procedures 25
provided in this Act, funds which are required as a result of the Governor's call of the 26
Kentucky State Police to extraordinary duty when an emergency situation has been 27
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declared to exist by the Governor. Funding is authorized to be provided from the General 1
Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 2
48.705). 3
(2) Restricted Funds Uses: Notwithstanding KRS 24A.179, 42.320(2)(h), 4
65.7631, 189A.050(3)(a), 237.110(18 ), and 281A.160(2)(b), funds are included in the 5
above Restricted Funds appropriation to maintain the operations and administration of the 6
Department of Kentucky State Police. 7
(3) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in 8
the above Restricted Funds appropriation is $4,653 in fiscal year 2026 -2027 and $4,746 9
in fiscal year 2027-2028 for each participant for training incentive payments. 10
(4) Support for Statewide Law Enforcement Purposes: Included in the above 11
Restricted Funds appropriation is $1,036,000 in fiscal year 2026 -2027 for the acquisition 12
of mobile data terminals and docking stations. Notwithstanding 2017 Ky. Acts ch. 130, 13
excess proceeds from the sale of state -owned real property and improvements in 14
Owensboro, Kentucky operated by the Department of Juvenile Justice shall be transferred 15
to the Department of Kentucky State Police for this purpose. Notwithstanding KRS 16
45.229, any portion of these funds that have not been expended by the end of fiscal year 17
2026-2027 shall not lapse and shall carry forward into fiscal year 2027-2028. 18
(5) Capitol Campus Security Personnel: Included in the above General Fund 19
appropriation is $125,600 in each fiscal year to support two Trooper R contracts 20
designated specifically for the Capitol campus. 21
(6) Background Check Fees: Pursuant to KRS 7.111, 7.112, and 11.160(1)(e), 22
the Department of Kentucky State Police shall not charge a fee for the cost of background 23
checks requested by the Legislative Research Commission during investigation processe s 24
related to confirmations of appointments or reappointments to boards and commissions 25
and administrative law judges. 26
(7) Statutory Salary Schedule Adjustments: Included in the above General 27
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Fund appropriation is $3,802,000 in General Fund and $1,817,900 i n Road Fund in fiscal 1
year 2026-2027 and $7,430,500 in General Fund and $3,728,400 in Road Fund in fiscal 2
year 2027-2028 to support the statutory adjustment to the salary schedule based on the 3
consumer price index for troopers and commercial vehicle enforcement officers. 4
(8) Kentucky Emergency Warning System Leases: The Department of 5
Kentucky State Police shall prepare a report detailing by county, including but not limited 6
to the number of leases contracted, the cost of each lease, and the number of leases yet to 7
be contracted. The Department of Kentucky State Police shall submit this report to the 8
Interim Joint Committee on Appropriations and Revenue on a quarterly basis beginning 9
November 1, 2026. 10
(9) Fleet Vehicles: The Department of Kentucky State Polic e shall prepare a 11
report detailing fleet vehicle purchases, including but not limited to total expenditures, 12
price per vehicle, the timing of purchases, the distribution of new vehicles purchased, as 13
well as the assigned use for each vehicle purchased. The Department of Kentucky State 14
Police shall submit this report on a quarterly basis to the Interim Joint Committee on 15
Appropriations and Revenue beginning November 1, 2026. 16
(10) Recruitment and Retention Reporting: The Department of Kentucky State 17
Police shall prepare a report detailing recruitment, retention, and demographic statistics, 18
including but not limited to age, gender, race, education-level, and geography, for trooper 19
cadet classes occurring in fiscal years 2025 -2026, 2026 -2027, and 2027 -2028. The 20
Department of Kentucky State Police shall submit this report on a quarterly basis to the 21
Interim Joint Committee on Appropriations and Revenue beginning November 1, 2026. 22
(11) Sworn Trooper Detail: Notwithstanding any statute to the contrary, 23
beginning wit h fiscal year 2025 -2026, no more than 25 percent of sworn troopers and 24
officers, excluding those positions established in KRS 16.187 and 16.196, shall be 25
assigned to detail other than a post. 26
(12) Land Acquisition Authorization: Notwithstanding KRS 56.040, the 27
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Department of Kentucky State Police may directly acquire, on behalf of the 1
Commonwealth, any land required for tower sites related to the Kentucky Emergency 2
Warning System or the Emergency Radio System Replacement project authorized in 3
2024 Ky. Acts ch. 175, Part II, H., 4., 007. 4
(13) Northern and Central Kentucky Crime Labs: Included in the above 5
General Fund appropriation is $609,700 in fiscal year 2026 -2027 and $770,500 in fiscal 6
year 2027-2028 to support the relocation of the Northern Kentucky Crim e Lab, as well as 7
four forensic biologist positions at the Central Kentucky Crime Lab in fiscal year 2026 -8
2027 and two forensic biologist positions at the Northern Kentucky Crime Lab in fiscal 9
year 2027 -2028. Notwithstanding any statute to the contrary, qu alified retirees may be 10
recruited and given due consideration in filling these positions. 11
(14) Compensatory Time and Overtime: Included in the above General Fund 12
appropriation is $5,500,000 in each fiscal year to support the conversion of compensatory 13
time to paid overtime for nonexempt sworn personnel. Notwithstanding any statute to the 14
contrary, all overtime work must be authorized by a supervisor in advance, not to exceed 15
100 hours annually, and any nonexempt employee who works overtime without prior 16
authorization will be paid for all hours worked in accordance with federal and state law 17
but may be subject to disciplinary action. 18
(15) Driver Testing Offices: Included in the above General Fund appropriation is 19
$1,302,900 in fiscal year 2026 -2027 and $1,570 ,000 in fiscal year 2027 -2028 to support 20
staffing and operations for driver testing at three existing regional driver's licensing 21
offices. 22
5. CORRECTIONS 23
a. Corrections Management 24
2026-27 2027-28 25
General Fund 19,043,300 19,130,000 26
Restricted Funds 399,400 149,000 27
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Federal Funds 100,000 304,300 1
TOTAL 19,542,700 19,583,300 2
(1) Local Correctional Facilities: Notwithstanding KRS 441.420, no funds are 3
provided for reimbursement to counties for design fees for architectural and engineering 4
services associated with any new local correctional facility approved by the Kentucky 5
Local Correctional Facilities Construction Authority. 6
(2) Facility Reporting: (a) The Department of Corrections shall 7
continuously monitor its bed utilization of county jails, halfway houses, Recovery 8
Kentucky drug treatment centers, and all other community correctional residential 9
facilities t hat are under contract with the Department. This monitoring shall include 10
periodic review of its classification system to ensure that all offenders are placed in the 11
least restrictive housing that provides appropriate security to protect public safety and 12
provide ample opportunity for treatment and successful reentry. 13
(b) On a monthly basis, the Department shall submit a report detailing the 14
average occupancy rate for each of these facility types outlined in paragraph (a) of this 15
subsection, as well as a projection of bed utilization one year from the reported period, to 16
the Interim Joint Committee on Appropriations and Revenue. 17
(3) Operational Costs for Inmate Population and Excess Local Jail Per Diem 18
Costs: In the event that actual operational costs and/or actual local jail per diem 19
payments exceed the amounts appropriated to support the budgeted average daily 20
population of state felons for each fiscal year, the additional payments, up to $10,000,000 21
in each fiscal year, shall be deemed necessary government expenses and shall be paid 22
from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund 23
Account (KRS 48.705), subject to notification as to necessity and amount by the State 24
Budget Director who shall report any certified expenditure to the Interim Joint 25
Committee on Appropriations and Revenue. 26
b. Adult Correctional Institutions 27
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2026-27 2027-28 1
General Fund 482,932,900 494,692,100 2
Restricted Funds 22,069,100 21,373,800 3
Federal Funds 30,000 95,600 4
TOTAL 505,032,000 516,161,500 5
(1) Transfer to State Institutions: Notwithstanding KRS 532.100(8), state 6
prisoners, excluding the Class C and Class D felons qualifying to serve time in county 7
jails, may be transferred to a state institution within 90 days of final senten cing, if the 8
county jail does not object to the additional 45 days. 9
(2) Little Sandy Correctional Complex: The Department of Corrections shall 10
prepare a report, including but not limited to the expenditures related to the expansion, 11
the number of full -time positions filled and vacant, the number of offenders housed, and 12
the number of offenders transferred from other facilities by facility. The Department of 13
Corrections shall submit this report on a quarterly basis to the Interim Joint Committee on 14
Appropriations and Revenue beginning November 1, 2026. 15
(3) Institutional Support: Included in the above General Fund appropriation is 16
$4,000,000 in fiscal year 2026 -2027 and $9,000,000 in fiscal year 2027 -2028 to support 17
increased medical costs. 18
c. Community Services and Local Facilities 19
2026-27 2027-28 20
General Fund 250,628,300 254,327,800 21
Restricted Funds 16,173,000 15,094,000 22
Federal Funds 874,200 874,200 23
TOTAL 267,675,500 270,296,000 24
(1) Local Jails Funding: Notwithstanding KRS 441.605 to 441.695, funds in the 25
amount of $8,847,300 in fiscal year 2026 -2027 and $7,742,200 in fiscal year 2027 -2028 26
shall be expended from the Kentucky Local Correctional Facilities Construction 27
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Authority for local correctional facility and operational support. 1
(2) Participation in Transparent Governing - Full Disclosure of Inmate 2
Population Forecasts and Related Materials: The Office of State Budget Director shall 3
provide the methodology, assumptions, data, and all other related materials used to 4
project biennial offender population forecasts conducted by the Office of State Budget 5
Director, the Kentucky Department of Corrections, and any consulting firms, to the 6
Interim Joint Committee on Appropriations and Revenue by October 1, 2027. This 7
submission shall include but not be limited to the projected state, county, and community 8
offender populations for the 2028 -2030 fiscal biennium and must coincide with the 9
budgeted amount for these populations. This submission shall clearly divulge the 10
methodology and reasoning b ehind the budgeted and projected offender population in a 11
commitment to participate in transparent governing. 12
(3) Program Completion and Sentence Credit Payments: Notwithstanding 13
KRS 197.045(6), payments for program completions resulting in sentencing cred it shall 14
not expire and shall continue through the 2026 -2028 fiscal biennium. Included in the 15
above General Fund appropriation is $13,500,000 in each fiscal year to support payments 16
for program completions resulting in sentencing credit as prescribed in KR S 17
197.045(6)(a), (b), and (c). The Department of Corrections shall prepare a report 18
annually, including but not limited to the number of program completions, the cost of 19
payments for each category of sentencing credit, and the programmatic impact on 20
recidivism. The Department of Corrections shall submit this report to the Interim Joint 21
Committee on Appropriations and Revenue by October 1 of each year. 22
(4) Substance Abuse, Mental Health, and Reentry Service Centers: (a)23
Notwithstanding any statute to the con trary, for each fiscal year, the Department of 24
Corrections shall pay each contracted provider of substance abuse, mental health, and 25
reentry centers a minimum of 65 percent of the contracted beds monthly. Any contracted 26
but unfilled beds as of the effective date of this Act may, at the discretion of the provider, 27
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be terminated. 1
(b) Each contracted provider, as provided for in paragraph (a) of this subsection, 2
shall report 100 percent of their occupancy to the Department of Corrections. The report 3
shall deta il the total number of beds, the number of beds available, and the type of 4
individual occupying bed space, and shall be submitted in a method and at a frequency 5
established by the Department's discretion. 6
d. Local Jail Support 7
2026-27 2027-28 8
General Fund 16,788,600 16,788,600 9
(1) Local Corrections Assistance Fund Allocation: Included in the above 10
General Fund appropriation is $4,630,200 in each fiscal year to be distributed to counties 11
pursuant to the provisions of House Bill 757 of the 2026 Regular Session. 12
(2) Life Safety or Closed Jails: Included in the above G eneral Fund 13
appropriation is $860,000 in each fiscal year to provide a monthly payment of an annual 14
amount of $20,000 to each county with a life safety jail or closed jail. The payment shall 15
be in addition to the payment required by KRS 441.206(2). 16
(3) Inmate Medical Care Expenses: Included in the above General Fund 17
appropriation is $792,800 in each fiscal year for medical care contracts to be distributed, 18
upon approval of the Department of Corrections, to counties by the formula codified in 19
KRS 441.206, an d $851,800 in each fiscal year, on a partial reimbursement basis, for 20
medical claims in excess of the statutory threshold pursuant to KRS 441.045. The 21
funding support for medical contracts and catastrophic medical expenses for indigents 22
shall be maintained in discrete accounts. Any medical claim that exceeds the statutory 23
threshold may be reimbursed for that amount in excess of the statutory threshold. 24
TOTAL - CORRECTIONS 25
2026-27 2027-28 26
General Fund 769,393,100 784,938,500 27
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Restricted Funds 38,641,500 36,616,800 1
Federal Funds 1,004,200 1,274,100 2
TOTAL 809,038,800 822,829,400 3
6. PUBLIC ADVOCACY 4
2026-27 2027-28 5
General Fund 96,695,100 96,571,700 6
Restricted Funds 4,368,100 4,282,800 7
Federal Funds 2,312,300 2,350,700 8
TOTAL 103,375,500 103,205,200 9
(1) Attorney Compensation: Included in the above General Fund appropriation 10
is $3,610,600 in fiscal year 2026 -2027 and $5,404,300 in fiscal year 2027 -2028 to 11
support an annual salary increase for attorneys with a caseload in the Department of 12
Public Advocacy who are reclassified pursuant to the provisions of House Bill 762 of the 13
2026 Regular Session. 14
(2) Technology Needs: Included in the above General Fund appropriation is 15
$800,000 in each fiscal year to support service fees and contracts for various software 16
and technology supports. 17
TOTAL - JUSTICE AND PUBLIC SAFETY CABINET 18
2026-27 2027-28 19
General Fund (Tobacco) 2,881,200 2,662,700 20
General Fund 1,328,583,400 1,359,915,200 21
Restricted Funds 235,916,300 221,737,200 22
Federal Funds 72,437,900 72,676,500 23
Road Fund 55,582,600 57,940,100 24
TOTAL 1,695,401,400 1,714,931,700 25
J. PERSONNEL CABINET 26
Budget Units 27
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1. GENERAL OPERATIONS 1
2026-27 2027-28 2
Restricted Funds 32,390,400 31,962,300 3
(1) Public Employee Health Insurance Trust Fund Actuarial Projections: 4
The Department of Employee Insurance shall prepare a report that includes actuarial 5
projections of the operating net gain or loss, recommended reserves, and remaining 6
balance after reserves , by plan year, for all active plan years and a minimum of two 7
upcoming plan years for the Public Employee Health Insurance Trust Fund, as of 8
September 30 of each fiscal year. This report shall be submitted to the Interim Joint 9
Committee on Appropriations and Revenue by December 1 of each year. 10
(2) Monthly Reporting Requirement: Notwithstanding any statute to the 11
contrary, the Personnel Cabinet shall, on a monthly basis, and no later than 45 days after 12
the last working day of each month, submit to the Legis lative Research Commission and 13
the Interim Joint Committee on Appropriations and Revenue data and reports related to 14
the operation and performance of the Kentucky Employees' Health Plan. The monthly 15
submission shall include, at a minimum: 16
(a) Claims and Enrollment Report, including: 17
1. A breakdown of all plan enrollments; 18
2. Medical claims lag; 19
3. Prescription claims lag; 20
4. Medical claims on a paid basis; and 21
5. Prescription claims on a paid basis; 22
(b) A trust fund cash transactions listing; 23
(c) A trust fund summary report; and 24
(d) Any other data or reports necessary to monitor the operation and performance 25
of the Kentucky Employees' Health Plan. 26
(3) State Health Plan Actuarial Reporting: The Personnel Cabinet shall, on or 27
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before May 1, 2026, provide to the General Assembly actuarial reports, studies, and 1
recommendations related to the development and implementation of benefits, enrollment 2
rules, and premium rates for Plan Years 2023, 2024, 2025, 2026, 2027, and 2028. 3
The cabinet shall also provide documenta tion of changes in expected claim costs 4
resulting from benefit changes implemented or projected for Plan Years 2026, 2027, and 5
2028, including the actuarial basis and methodology used for such projections. 6
In addition, the cabinet shall provide documentation of actuarially projected income 7
and expenses for Plan Years 2026, 2027, and 2028, including the actuarial basis and 8
methodology used for such projections. Such documentation shall include, at a minimum, 9
prior plan experience and the source of that exper ience, adjustments attributable to plan 10
or rate changes, claim reserve details, the inflationary trend utilized, and the rationale 11
supporting the selected inflationary trend. 12
All reports and documentation required by this subsection shall also be posted on 13
the Personnel Cabinet’s website in a publicly accessible location. 14
2. PUBLIC EMPLOYEES DEFERRED COMPENSATION AUTHORITY 15
2026-27 2027-28 16
Restricted Funds 8,112,800 7,928,800 17
3. WORKERS' COMPENSATION BENEFITS AND RESERVE 18
2026-27 2027-28 19
Restricted Funds 23,618,700 23,061,000 20
4. FIXED ALLOCATION NON-HAZARDOUS PENSION FUND 21
2026-27 2027-28 22
General Fund 63,858,000 63,858,000 23
(1) Quasi-State Agency Subsidy Distributions: (a) Included in the above 24
General Fund appropriation is $332,100 in each fiscal year to maintain each Non-P1 state 25
agency's fiscal year 2019-2020 baseline subsidy. 26
(b) Included in the above General Fund appropriation is $18,882,100 in each 27
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fiscal year to maintain each Regional Mental Health Unit's fiscal year 2019-2020 baseline 1
subsidy. 2
(c) Included in the above General Fund appropriation is $25,151,300 in each 3
fiscal year to maintain each health department's fiscal year 2019-2020 baseline subsidy. 4
(d) The distribution of the baseline subsidy to each employer classification 5
identified in paragraphs (a), (b), and (c) of this subsection shall be distributed in the 6
following manner: In July and January of each year, the Office of State Budget Director 7
shall obtain the total creditable compensation reported by each employer to the Kentucky 8
Public Pensions Authority and utilize that number to determine how much of each total 9
appropriation shall be distributed to each employer within its own unique employer 10
classification. Payments to each employer shall be made on September 1 and April 1 of 11
each fiscal year. The Office of State Budget Director shall provide a report to the Interim 12
Joint Committee on Appropriations and Revenue by May 1 of each fiscal year. The report 13
shall detail the disbursement of funds in this subsection and include the creditable 14
compensation, by employer, for which disbursements are made. 15
(e) Notwithstanding KRS 61.5991(6)(b), included in the above General Fund 16
appropriation is $19,492,500 in each fiscal year to support each employer's share of the 17
anticipated retirement costs over each employer's fiscal year 2019 -2020 baseline 18
contribution as adjusted and posted under the 2026 Budget Bills tile on the Legislative 19
Research Commission's website. 20
TOTAL - PERSONNEL CABINET 21
2026-27 2027-28 22
General Fund 63,858,000 63,858,000 23
Restricted Funds 64,121,900 62,952,100 24
TOTAL 127,979,900 126,810,100 25
K. POSTSECONDARY EDUCATION 26
Budget Units 27
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1. COUNCIL ON POSTSECONDARY EDUCATION 1
2026-27 2027-28 2
General Fund (Tobacco) 6,165,900 5,745,500 3
General Fund 14,217,900 17,696,700 4
Restricted Funds 11,709,700 9,025,900 5
Federal Funds 6,128,800 6,190,100 6
TOTAL 38,222,300 38,658,200 7
(1) Interest Earnings Transfer from the Stra tegic Investment and Incentive 8
Trust Fund Accounts: Notwithstanding KRS 164.7911 to 164.7927, included in the 9
above Restricted Funds appropriation is $3,077,300 in fiscal year 2026 -2027 from the 10
interest earnings on the Research Challenge and Comprehensive University Excellence 11
trust funds to support the operations of the Council on Postsecondary Education. 12
(2) Cancer Research and Screening: Included in the above General Fund 13
(Tobacco) appropriation is $6,165,900 in fiscal year 2026 -2027 and $5,745,500 in f iscal 14
year 2027 -2028 for cancer research and screening to be shared equally between the 15
University of Kentucky and the University of Louisville. Of these amounts, $625,000 in 16
each fiscal year is from the lapse and reallocation of Early Childhood Developmen t Fund 17
appropriations set forth in Part X of this Act. 18
(3) Redistribution of Resources: Notwithstanding KRS 164.028 to 164.0282, no 19
General Fund is provided for Professional Education Preparation. 20
(4) Postsecondary Education Debt: Notwithstanding KRS 45.75 0 to 45.810, in 21
order to lower the cost of borrowing, any university that has issued or caused to be issued 22
debt obligations through a not -for-profit corporation or a municipality or county 23
government for which the rental or use payments of the university substantially meet the 24
debt service requirements of those debt obligations is authorized to refinance those debt 25
obligations if the principal amount of the debt obligations is not increased and the rental 26
payments of the university are not increased. Any funds used by a university to meet debt 27
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obligations issued by a university pursuant to this subsection shall be subject to 1
interception of state-appropriated funds pursuant to KRS 164A.608. 2
(5) Disposition of Postsecondary Institution Property: Notwithstanding KRS 3
45.777, a postsecondary institution’s governing board may elect to sell or dispose of real 4
property or major items of equipment and proceeds from the sale shall be designated to 5
the funding sources, on a proportionate basis, used for acquisition of the equipment or 6
property to be sold. 7
(6) Spinal Cord and Head Injury Research: Included in the above General 8
Fund appropriation is $1,920,000 in fiscal year 2026 -2027 and $1,860,000 in fiscal year 9
2027-2028 for spinal cord and head injury research. In ac cordance with KRS 211.500 to 10
211.504, the appropriation in each fiscal year shall be shared between the University of 11
Kentucky and the University of Louisville. 12
(7) Immunity for Postsecondary Institutions: Notwithstanding any statute to 13
the contrary, a pub lic postsecondary institution, including any affiliated corporation, its 14
officers, employees, and agents, shall be immune from all claims, including class action 15
claims for damages, a declaratory judgment, and equitable relief based on an act or 16
omission if: 17
(a) The claim arises out of or in connection with tuition paid to the public 18
postsecondary institution for an academic term that included the months of March, April, 19
and May 2020; 20
(b) The claim alleges losses or damages arising from an act or omission b y the 21
public postsecondary institution during or in response to the COVID-19 emergency; and 22
(c) The alleged act or omission of the public postsecondary institution was related 23
to protecting public health and safety interests in response to the COVID -19 emergency 24
in compliance with federal, state, or local guidance, including but not limited to: 25
1. Transition to online or otherwise remote instruction; 26
2. Pause or modification to instruction available through the institution of higher 27
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education; 1
3. Closure of, or modification to, operation of on -campus facilities of the public 2
postsecondary institution; or 3
4. The public postsecondary institution offered online and otherwise remote 4
learning options that allowed students to complete the coursework in t he academic term 5
that included the months of March, April, and May 2020 and receive academic credit. 6
(8) Ovarian Cancer Screening: Included in the above General Fund 7
appropriation is $960,000 in fiscal year 2026-2027 and $930,000 in fiscal year 2027-2028 8
for the Ovarian Cancer Screening Outreach Program at the University of Kentucky. 9
(9) Southern Regional Education Board Dues: Included in the above General 10
Fund appropriation is $224,800 in each fiscal year for Southern Regional Education 11
Board dues. 12
2. KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY 13
2026-27 2027-28 14
General Fund 384,709,400 384,529,400 15
Restricted Funds 62,270,900 62,292,900 16
Federal Funds 86,000 86,000 17
TOTAL 447,066,300 446,908,300 18
(1) College Access Program: The followin g is appropriated for the College 19
Access Program in each fiscal year: 20
(a) Notwithstanding KRS 154A.130(4), $179,344,800 in General Fund; 21
(b) Notwithstanding KRS 164.7891, $1,100,000 in Restricted Funds; and 22
(c) $450,000 in Restricted Funds from the colle ction of loans related to the 23
Minority Educator Recruitment and Retention Scholarship. 24
(2) Kentucky Tuition Grant Program: Notwithstanding KRS 154A.130(4), 25
included in the above General Fund appropriation is $45,975,000 in each fiscal year for 26
the Kentucky Tuition Grant Program. 27
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(3) Kentucky National Guard Tuition Award Program: Notwithstanding KRS 1
154A.130(4), included in the above General Fund appropriation is $7,398,100 in each 2
fiscal year for the National Guard Tuition Award Program. 3
(4) Kentucky Educational Excellence Scholarships (KEES): The following is 4
appropriated for KEES in each fiscal year: 5
(a) Notwithstanding KRS 154A.130(4), $93,656,600 in General Fund; 6
(b) $12,269,100 in Restricted Funds from previous fiscal years' excess Lottery 7
funds; and 8
(c) $12,300,000 in Restricted Funds from Unclaimed Lottery Prize revenue. 9
Notwithstanding KRS 164.7874(7)(c) and 164.7879(2)(a), for the 2026 -2028 fiscal 10
biennium, an eligible high school student shall only be eligible for a Kentucky 11
Educational Excellence Scholarship base award for an academic year in which the 12
student has attained at least a 2.75 grade point average. 13
(5) Work Ready Kentucky Scholarship Program: Notwithstanding KRS 14
154A.130(4), included in the above General Fund appropriation is $12,000,500 in each 15
fiscal year for the Work Ready Kentucky Scholarship Program. It is the intent of the 16
General Assembly for Work Ready Kentucky Scholarships to only be awarded to 17
recipients that complete eligible courses. 18
(6) Dual Credit Scholarship Program: (a) Notwithstanding KRS 19
154A.130(4), included in the above General Fund appropriation is $21,149,500 in each 20
fiscal year for the Dual Credit Scholarship Program. Included in the above Restricted 21
Funds appropriation is $6,290,100 in each fiscal year from previous years’ excess Lottery 22
funds held in trust and agency account for the Dual Credit Scholarship Program. 23
(b) Notwithstanding KRS 164.786(1)(f) and 164.787(2)(d), the dual credit tuition 24
rate ceiling shall be one -half of the per credit hour tuition amount cha rged by the 25
Kentucky Community and Technical College System for in -state students. 26
Notwithstanding KRS 164.786(4)(c), eligible high school students may receive a dual 27
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credit scholarship for two career and technical education dual credit courses per academic 1
year and four general education dual credit courses over the junior and senior years, up to 2
a maximum of 12 approved dual credit courses. 3
(7) Veterinary Medicine Contract Spaces: Included in the above General Fund 4
appropriation is $5,800,400 in each fisc al year for the Veterinary Medicine Contract 5
Spaces Program. For students receiving an initial award in fiscal year 2027 -2028 or 6
thereafter, as a condition of the contract space support each recipient shall enter into a 7
written agreement with the Kentucky Higher Education Assistance Authority to practice 8
veterinary medicine in the Commonwealth of Kentucky for at least one year for each year 9
the contract space is received. If a recipient fails to complete the required service within 10
the timeframe established by the Authority, the total amount of the contract space support 11
received shall convert to a loan and shall be repaid to the Commonwealth. For any 12
support converted to a loan, interest shall be assessed and shall accrue on the principal 13
balance beginning on the date of the first disbursement. The rate of interest shall be 14
determined by the Authority through the promulgation of administrative regulations. All 15
repayments, including principal and interest, shall be deposited into a trust and agency 16
account to be used for future awards. The Authority shall be entitled to recover 17
reasonable costs of collection and attorney fees in the event of default. Students receiving 18
contract space support prior to fiscal year 2027 -2028 shall not be subject to this service 19
requirement. 20
(8) Optometry Scholarship Program: Included in the above General Fund 21
appropriation is $814,500 in fiscal year 2026-2027 and $789,000 in fiscal year 2027-2028 22
for the Optometry Scholarship Program. For students receiving an initial award in fis cal 23
year 2027-2028 or thereafter, as a condition of the scholarship each recipient shall enter 24
into a written agreement with the Kentucky Higher Education Assistance Authority to 25
practice optometry in the Commonwealth of Kentucky for at least one year for each year 26
the scholarship is received. If a recipient fails to complete the required service 27
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requirement within the timeframe established by the Authority, the scholarship shall be 1
converted to a loan and be shall repaid to the Commonwealth. For any schola rship 2
converted to a loan, interest shall be assessed and shall accrue on the principal balance 3
beginning on the date of the first disbursement. The rate of interest shall be determined 4
by the Authority through the promulgation of administrative regulation s. All repayments, 5
including principal and interest, shall be deposited into a trust and agency account to be 6
used for future awards. The Authority shall be entitled to recover reasonable costs of 7
collection and attorney fees in the event of default. Stude nts receiving the scholarship 8
prior to fiscal year 2027-2028 shall not be subject to this service requirement. 9
(9) Use of Lottery Revenues: Notwithstanding KRS 154A.130(3) and (4), 10
lottery revenues in the amount of $362,200,000 in each fiscal year are appr opriated to the 11
Kentucky Higher Education Assistance Authority. Notwithstanding KRS 154A.130(4) 12
and any provisions of this Act to the contrary, if lottery receipts received by the 13
Commonwealth, excluding any unclaimed prize money received under Part III, 20. of this 14
Act, exceed $370,000,000 in fiscal year 2025-2026 or $365,000,000 in each fiscal year of 15
the 2026-2028 fiscal biennium, the additional excess shall be transferred to a trust and 16
agency account and shall not be expended or appropriated without th e express authority 17
of the General Assembly. 18
(10) Redistribution of Resources: Notwithstanding KRS 164.740 to 164.764, 19
164.7890(11)(c), 164.7891(11)(b), and 164.7894, no General Fund is provided for Work 20
Study, Coal County Pharmacy Scholarships, Osteopathi c Medicine Scholarships, and 21
Coal County College Completion Scholarships in order to provide additional funding to 22
the College Access Program and Kentucky Tuition Grant Program. 23
(11) Teacher Scholarship Program: Included in the above appropriation is 24
$1,015,000 in Restricted Funds in each fiscal year for the Teacher Scholarship Program. 25
The Kentucky Higher Education Assistance Authority, in coordination with the Council 26
on Postsecondary Education, shall submit a r eport on the number of teacher scholarships 27
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provided in each fiscal year, the program of study in which recipients are enrolled, 1
recipient retention rates, total number of applications, and the impact of the scholarships 2
on recruitment. This report shall b e submitted to the Interim Joint Committee on 3
Education by September 1 of each fiscal year. 4
(12) General Administration and Support: Included in the above General Fund 5
appropriation is $6,000,000 in each fiscal year to support general administration and 6
support services. 7
(13) Teacher Recruitment Student Loan Forgiveness Pilot Program: Included 8
in the above General Fund appropriation is $4,800,000 in each fiscal year for the Teacher 9
Recruitment Student Loan Forgiveness Pilot Program. Notwithstanding KRS 10
154A.130(4), of this amount $2,000,000 shall be allocated from lottery revenues. 11
(14) Innovative Scholarship Pilot Project: Notwithstanding KRS 154A.130(4), 12
included in the above General Fund appropriation is $675,500 in each fiscal year for the 13
Innovative Sch olarship Pilot Project. The Kentucky Higher Education Assistance 14
Authority shall work in coordination with the Council on Postsecondary Education to 15
develop and implement the Innovative Scholarship pilot project. 16
3. EASTERN KENTUCKY UNIVERSITY 17
2026-27 2027-28 18
General Fund 80,209,800 73,838,900 19
Restricted Funds 218,354,400 218,016,300 20
Federal Funds 135,500,000 135,500,000 21
TOTAL 434,064,200 427,355,200 22
(1) Mandated Programs: Included in the above General Fund appropriation are 23
the following: 24
(a) $4,571,900 in each fiscal year for the Model Laboratory School; 25
(b) Notwithstanding KRS 61.5991, $4,454,900 in each fiscal year to support the 26
university's share of the anticipated retirement costs over the university's fiscal year 27
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2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile 1
on the Legislative Research Commission's website; and 2
(c) $2,423,200 in each fiscal year to support the Commonwealth’s Property and 3
Casualty Insurance Fund premium. 4
(2) Air Traffic Control Training Program: Included in the above General Fund 5
appropriation is $6,500,000 in fiscal year 2026 -2027 and $1,500,000 in fiscal year 2027 -6
2028 to support the establishment and operations of an air traffic control training 7
program. 8
4. KENTUCKY STATE UNIVERSITY 9
2026-27 2027-28 10
General Fund 32,198,500 30,198,500 11
Restricted Funds 68,862,300 77,848,400 12
Federal Funds 40,680,600 44,031,000 13
TOTAL 141,741,400 152,077,900 14
(1) Mandated Programs: Included in the above General Fund appro priation are 15
the following: 16
(a) $10,381,000 in each fiscal year to fund the state match payments required of 17
land-grant universities under federal law; 18
(b) $473,600 in each fiscal year to support the Commonwealth’s Property and 19
Casualty Insurance Fund premium; and 20
(c) $2,000,000 in fiscal year 2026-2027 for expansion of online offerings. 21
5. MOREHEAD STATE UNIVERSITY 22
2026-27 2027-28 23
General Fund 46,356,100 46,873,100 24
Restricted Funds 113,586,900 113,586,900 25
Federal Funds 47,176,400 47,176,400 26
TOTAL 207,119,400 207,636,400 27
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(1) Mandated Programs: Included in the above General Fund appropriation are 1
the following: 2
(a) $5,959,800 in fiscal year 2026 -2027 and $6,476,800 in fiscal year 2027 -2028 3
for the Craft Academy for Excellence in Science and Mathematics; 4
(b) Notwithstanding KRS 61.5991, $2,456,500 in each fiscal year to support the 5
university's share of the anticipate d retirement costs over the university's fiscal year 6
2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile 7
on the Legislative Research Commission's website; and 8
(c) $1,274,400 in each fiscal year to support the Commonwealt h’s Property and 9
Casualty Insurance Fund premium. 10
6. MURRAY STATE UNIVERSITY 11
2026-27 2027-28 12
General Fund 49,549,600 49,549,600 13
Restricted Funds 159,450,500 159,450,500 14
Federal Funds 26,494,600 26,494,600 15
TOTAL 235,494,700 235,494,700 16
(1) Mandated Programs: Included in the above General Fund appropriation are 17
the following: 18
(a) $4,034,200 in each fiscal year for the Breathitt Veterinary Center; 19
(b) Notwithstanding KRS 61.5991, $1,635,500 in each fiscal year to support the 20
university's share of the anticipated retirement costs over the university's fiscal year 21
2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile 22
on the Legislative Research Commission's website; and 23
(c) $1,451,400 in each fiscal year to support the Commonwealth’s Property and 24
Casualty Insurance Fund premium. 25
7. NORTHERN KENTUCKY UNIVERSITY 26
2026-27 2027-28 27
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General Fund 56,453,800 57,249,300 1
Restricted Funds 221,360,100 221,360,100 2
Federal Funds 15,450,500 15,450,500 3
TOTAL 293,264,400 294,059,900 4
(1) Mandated Programs: Included in the above General Fund appropriation are 5
the following: 6
(a) $1,323,900 in each fiscal year for the Kentucky Center for Mathematics; 7
(b) $1,377,900 in each fiscal year to support the Commonwe alth’s Property and 8
Casualty Insurance Fund premium; and 9
(c) $1,800,000 in fiscal year 2026 -2027 and $3,600,000 in fiscal year 2027 -2028 10
for the Votruba Young Scholars Academy. 11
8. UNIVERSITY OF KENTUCKY 12
2026-27 2027-28 13
General Fund (Tobacco) 500,000 1,500,000 14
General Fund 292,513,300 287,193,700 15
Restricted Funds 8,688,499,300 9,509,319,400 16
Federal Funds 315,770,000 333,769,000 17
TOTAL 9,297,282,600 10,131,782,100 18
(1) Mandated Programs: Included in the above General Fund appropriation are 19
the following: 20
(a) $35,420,800 in each fiscal year for the College of Agriculture, Food and 21
Environment’s Cooperative Extension Service. Of this amount, $4,145,500 in each fiscal 22
year is provided to support extension agent compensation; 23
(b) $31,434,100 in each fiscal year for the Kentucky Agricultural Experiment 24
Station; 25
(c) $10,176,200 in each fiscal year for the Center for Applied Energy Research; 26
(d) $4,076,300 in each fiscal year for the Kentucky Geological Survey; 27
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(e) $4,034,200 in each fiscal year for the Veterinary Diagnostic Laboratory; 1
(f) $2,040,500 in each fiscal year for the Sanders-Brown Center on Aging; 2
(g) $1,800,000 in each fiscal year for the College of Agriculture, Food and 3
Environment’s Division of Regulatory Services; 4
(h) $600,000 in each fiscal year for the College of Agriculture, Food and 5
Environment’s Kentucky Small Business Development Center; 6
(i) $586,300 in each fiscal year for the University Press of Kentucky; 7
(j) $500,000 in each fiscal year f or the Human Development Institute for the 8
Supported Higher Education Project; 9
(k) $450,200 in each fiscal year for the Center of Excellence in Rural Health; 10
(l) $950,200 in each fiscal year for the Kentucky Cancer Registry; 11
(m) $100,000 in each fiscal year for the Sports Medicine Research Institute; and 12
(n) $10,750,900 in each fiscal year to support the Commonwealth's Property and 13
Casualty Insurance Fund Premium. 14
(2) Nuclear Reactor Site Readiness Pilot Program: Costs associated with the 15
procurement of an Early Site Permit (10 C.F.R. secs. 52.12 et seq.), a Construction 16
Permit (10 C.F.R. pt. 50), or a Combined Operating License (10 C.F.R. secs. 52.71 et 17
seq.) from the United States Nuclear Regulatory Commission for up to three projects 18
under the Nuclear Re actor Site Readiness Pilot Program shall be deemed a necessary 19
government expense and shall be paid from the General Fund Surplus Account (KRS 20
48.700) or the Budget Reserve Trust Fund Account (KRS 48.705) in an amount not to 21
exceed $75,000,000 for the 2026 -2028 fiscal biennium. Any such expenditure shall be 22
subject to the prior written approval of the State Budget Director and shall be limited to 23
one-third of the actual costs incurred per project, not to exceed $25,000,000 per project. 24
(3) Kindergarten Read iness Program: Included in the above General Fund 25
(Tobacco) appropriation is $500,000 in fiscal year 2026 -2027 and $1,500,000 in fiscal 26
year 2027-2028 to establish the Kindergarten Readiness Performance -Based Child-Care 27
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Incentive Pilot Program. This approp riation is from the lapse and reallocation of Early 1
Childhood Development Fund appropriations set forth in Part X of this Act. 2
(4) Energy Planning and Inventory Commission: In fiscal year 2026 -2027, 3
$15,000,000 of the funds authorized in 2024 Ky. Acts ch. 173, sec. 1, (207) shall be 4
allocated to the Energy Planning and Inventory Commission. 5
9. UNIVERSITY OF LOUISVILLE 6
2026-27 2027-28 7
General Fund (Tobacco) 2,750,000 -0- 8
General Fund 135,615,900 133,164,800 9
Restricted Funds 1,515,148,500 1,547,903,100 10
Federal Funds 196,365,300 200,610,300 11
TOTAL 1,849,879,700 1,881,678,200 12
(1) Mandated Programs: Included in the above General Fund appropriation are 13
the following: 14
(a) $695,200 in each fiscal year for the Rural Health Education Program; 15
(b) $150,000 in each fiscal year for the Kentucky Autism Training Center; 16
(c) $100,000 in each fiscal year for the School of Dentistry to provide dental care 17
to patients with dental issues related to drug use; 18
(d) $150,000 in each fiscal year for the Mid-South REACH Grant; and 19
(e) $5,801,100 in each fiscal year to support the Commonwealth’s Property and 20
Casualty Insurance Fund premium. 21
(2) Cancer Research: Included in the above General Fund (Tobacco) 22
appropriation is $2,750,000 in fiscal y ear 2026 -2027 to fund cancer research at the 23
Brown Cancer Center. This appropriation is from the lapse and reallocation of Early 24
Childhood Development Fund appropriations set forth in Part X of this Act. 25
10. WESTERN KENTUCKY UNIVERSITY 26
2026-27 2027-28 27
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General Fund 80,142,600 79,202,300 1
Restricted Funds 279,343,600 280,343,600 2
Federal Funds 44,143,300 44,143,300 3
TOTAL 403,629,500 403,689,200 4
(1) Mandated Programs: Included in the above General Fund appropriation are 5
the following: 6
(a) $5,959,800 in fiscal year 2026 -2027 and $6,476,800 in fiscal year 2027 -2028 7
for the Gatton Academy of Mathematics and Science in Kentucky; 8
(b) $1,750,000 in each fiscal year for the Kentucky Mesonet; 9
(c) Notwithstanding KRS 61.5991, $1,412,000 in each fis cal year to support the 10
university's share of the anticipated retirement costs over the university's fiscal year 11
2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile 12
on the Legislative Research Commission's website; and 13
(d) $1,866,900 in each fiscal year to support the Commonwealth’s Property and 14
Casualty Insurance Fund premium. 15
11. KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM 16
2026-27 2027-28 17
General Fund 179,381,700 176,089,000 18
Restricted Funds 556,045,700 561,002,400 19
Federal Funds 295,517,000 295,516,800 20
TOTAL 1,030,944,400 1,032,608,200 21
(1) Mandated Programs: Included in the above General Fund appropriation are 22
the following: 23
(a) $6,000,000 in each fiscal year for KCTCS-TRAINS; 24
(b) $1,000,000 in each fiscal year for Adult Agriculture Education; and 25
(c) $3,164,800 in each fiscal year to support the Commonwealth’s Property and 26
Casualty Insurance Fund premium. 27
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(2) Firefighters Foundation Program Fund: (a) Included in the above 1
Restricted Funds appropriation is $64,160,100 in fiscal year 2026 -2027 and $63,175,400 2
in fiscal year 2027-2028 for the Firefighters Foundation Program Fund. 3
(b) Notwithstanding KRS 95A.250(1)(a), included in th e above Restricted Funds 4
appropriation are sufficient funds for an incentive payment of $4,653 in fiscal year 2026 -5
2027 and $4,746 in fiscal year 2027 -2028, plus an amount equal to the required 6
employer’s contribution on the supplement in each fiscal year for each qualified 7
professional firefighter under the Firefighters Foundation Program Fund. KRS 8
95A.250(1)(b) to (e) shall remain applicable, except that the administrative expense 9
reimbursement cap under KRS 95A.250(1)(e)(3) shall not exceed $500,000. 10
(c) Notwithstanding KRS 95A.262(2), included in the above Restricted Funds 11
appropriation is $15,300 in each fiscal year for aid payments for each qualified volunteer 12
fire department. 13
(d) Notwithstanding KRS 95A.200 to 95A.300, $18,800,000 in fiscal year 2026 -14
2027 shall be transferred to support projects as set forth in Part II, Capital Projects 15
Budget, of this Act. 16
(e) Notwithstanding KRS 95A.200 to 95A.300, included in the above Restricted 17
Funds appropriation is $1,869,900 in each fiscal year for the State F ire Rescue Training 18
mandated program. 19
(f) Notwithstanding KRS 95A.200 to 95A.300, included in the above Restricted 20
Funds appropriation is $1,556,000 in fiscal year 2026 -2027 to be transferred to the 21
Replace Unsafe Fire Equipment capital project for the En ergy and Environment Cabinet 22
as set forth in Part II, Capital Projects Budget, of this Act. 23
(3) Firefighters Training Center Fund: Notwithstanding KRS 95A.262(3), 24
$1,000,000 in Restricted Funds is provided in each fiscal year for the Firefighters 25
Training Center Fund. 26
(4) Guaranteed Energy Savings Performance Contracts: Notwithstanding 27
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KRS 56.770 and 56.774, guaranteed energy savings performance contracts may be 1
executed for buildings operated by the Kentucky Community and Technical College 2
System under agreements governed by KRS 164.593. 3
(5) Disposition of KCTCS Property: Notwithstanding KRS 45.777, the KCTCS 4
governing board may elect to sell or dispose of real property or major equipment and 5
proceeds that are surplus to its needs and retain the proceeds of any sale. 6
(6) Other Postemployment Benefits Trust Fund: By October 1, 2026, the 7
President of the Kentucky Community and Technical College System (KCTCS) is 8
directed to have determined the actuarial liabilities of the KCTCS Other Postemployment 9
Trust Fund effective December 31, 2026, and provide a report to the Interim Joint 10
Committee on Appropriations and Revenue. By January 1, 2027, with the assistance of 11
the State Budget Director and the Secretary of the Finance and Administration Cabinet, 12
the President of KCTCS shall submit a plan to the Legislative Research Commission to 13
have the difference between the balance of the KCTCS Other Postemployment Benefits 14
Trust Fund and the actuarial liabilities of the fund transferred to the Budget Reserve Trust 15
Fund Account (KRS 48.705). It is the intent of the 2026 General Assembly to take action 16
on the plan submitted to the Legislative Research Commission in the 2027 Regular 17
Session. 18
(7) Commonwealth West Healthcare Workforce Innovation Center - Carry 19
Forward of Appropr iation Balance: Notwithstanding KRS 45.229, the Federal Fund 20
appropriation balance from 2022 Ky. Acts ch. 199, Part I, J., 11., (6) shall not lapse and 21
shall carry forward. 22
12. POSTSECONDARY EDUCATION PERFORMANCE FUND 23
2026-27 2027-28 24
General Fund 115,000,000 115,000,000 25
TOTAL - POSTSECONDARY EDUCATION 26
2026-27 2027-28 27
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General Fund (Tobacco) 9,415,900 7,245,500 1
General Fund 1,466,348,600 1,450,585,300 2
Restricted Funds 11,894,631,900 12,760,149,500 3
Federal Funds 1,123,312,500 1,148,968,000 4
TOTAL 14,493,708,900 15,366,948,300 5
L. PUBLIC PROTECTION CABINET 6
Budget Units 7
1. SECRETARY 8
2026-27 2027-28 9
Restricted Funds 11,485,300 11,172,000 10
2. PROFESSIONAL LICENSING 11
2026-27 2027-28 12
Restricted Funds 5,377,800 5,321,900 13
Federal Funds 204,700 204,700 14
TOTAL 5,582,500 5,526,600 15
(1) Additional Personnel: Included in the above Restricted Funds appropriation 16
is $100,900 in fiscal year 2026 -2027 and $100,600 in fiscal year 2027 -2028 to support 17
additional personnel. 18
(2) Real Property Boards: Included in the above appropriations is sufficient 19
funding to implement and carry out the provisions of 2024 Ky. Acts ch. 182. 20
3. BOXING AND WRESTLING AUTHORITY 21
2026-27 2027-28 22
Restricted Funds 326,400 325,000 23
(1) Additional Personnel: Included in the above Restricted Funds appropriation 24
is $70,000 in each fiscal year to support additional personnel. 25
4. ALCOHOLIC BEVERAGE CONTROL 26
2026-27 2027-28 27
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Restricted Funds 9,177,600 8,636,500 1
Federal Funds 1,014,700 1,014,700 2
TOTAL 10,192,300 9,651,200 3
(1) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in 4
the above Restricted Funds appropriation is $4,653 in fiscal year 2026 -2027 and $4,746 5
in fiscal year 2027-2028 for each participant for training incentive payments. 6
(2) Special Temporary Nonprofit License: (a) Notwithstanding any provisions 7
of KRS Chapters 241 to 244 or administrative regulations promulgated thereunder to the 8
contrary, a special temporary nonprofit license shall be issued to a nonprofit organization 9
or the organizer or sponsor of a state, regional, or national conference for its use at state, 10
regional, or national conferences, which shall not include a political campaign fundraiser. 11
(b) A spe cial temporary nonprofit license shall authorize the holder and its 12
employees or agents to purchase, transport, receive, possess, store, sell, donate, deliver, 13
and serve alcoholic beverages, including wine, malt beverages, and distilled spirits, to be 14
sold by the package or the drink, or to be served free of charge by the drink, in person to 15
attendees of state, regional, or national conferences, by auction, or by raffle, or sold or 16
served free of charge by the drink to attendees of state, regional, or natio nal conferences, 17
and to receive alcoholic beverages from distillers, rectifiers, wineries, small farm 18
wineries, brewers, microbreweries, wholesalers, distributors, retailers, or any other 19
person, by gift, donation, or delivery for its use at a state, regio nal, or national 20
conference. 21
(c) The location at which the alcoholic beverages are auctioned, sold, raffled, 22
served, or consumed under the provisions of this subsection shall not constitute a public 23
place for the purposes of KRS Chapter 222. Nonprofit events, including state, regional, or 24
national conferences, may be conducted on licensed or unlicensed premises. 25
(d) A special temporary nonprofit license shall not be issued for any period longer 26
than 30 days. 27
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(e) Notwithstanding any other provision of KRS Ch apters 241 to 244, a distiller, 1
rectifier, winery, small farm winery, brewer, microbrewery, wholesaler, distributor, or 2
retailer may donate, give away, or deliver any of its products to a nonprofit organization 3
or the organizer or sponsor of a state, regio nal, or national conference possessing a 4
special temporary nonprofit license. 5
(f) Nothing herein shall prohibit the employees of an entity that holds a special 6
temporary nonprofit license from serving or selling wine, malt beverages, and distilled 7
spirits by the drink to attendees of state, regional, or national conference. 8
(g) Nothing in this section shall prohibit the employees of retail drink licensees, 9
including but not limited to NQ1, NQ2, NQ3, and licensed caterers from serving or 10
selling wine, malt b everages, and distilled spirits by the drink at a state, regional, or 11
national conference on the account of or on behalf of a nonprofit organization or the 12
organizer or sponsor of a state, regional, or national conference that holds a special 13
temporary nonprofit license. 14
(3) Additional Tobacco, Nicotine, and Vapor Personnel: Included in the above 15
Restricted Funds appropriation is $2,750,000 in fiscal year 2026 -2027 and $2,250,000 in 16
fiscal year 2027-2028 to support additional personnel and vehicles. 17
5. FINANCIAL INSTITUTIONS 18
2026-27 2027-28 19
Restricted Funds 17,785,200 17,651,100 20
6. HOUSING, BUILDINGS AND CONSTRUCTION 21
2026-27 2027-28 22
General Fund 251,100 3,282,000 23
Restricted Funds 28,935,700 25,761,600 24
TOTAL 29,186,800 29,043,600 25
(1) Industrial or Business Project Plan Reviews and Inspections: 26
Notwithstanding KRS 198B.060, permit applicants may request local or state 27
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governments to perform plan review, inspection, and enforcement responsibilities related 1
to industrial or business projects. 2
(2) Inspectors and Reviewers Reporting Requirement: The Department of 3
Housing, Buildings and Construction shall submit a report to the Legislative Research 4
Commission, Office of Budget Review, by December 1 of each fiscal year detailing the 5
number of full -time inspectors and reviewers, in addition to the number of completed 6
inspections and plan reviews. 7
(3) Operations of the Department: Notwithstanding KRS 227A.050, included 8
in the above Restricted Funds appropriation is $2,977,600 in fi scal year 2026 -2027 to 9
support of the operations of the Department of Housing, Buildings and Construction, 10
Division of General Inspections. 11
(4) School Building Plan Reviews and Inspections: Notwithstanding KRS 12
198B.060, local governments may have jurisdict ion for plan review, inspection, and 13
enforcement responsibilities over buildings intended for educational purposes, other than 14
licensed day-care centers, at the discretion of the local school districts. 15
(5) Additional Plumbing Personnel: Included in the ab ove Restricted Funds 16
appropriation is $206,900 in fiscal year 2026-2027 and $206,200 in fiscal year 2027-2028 17
to support additional personnel. 18
(6) Additional HVAC Personnel: Included in the above Restricted Funds 19
appropriation is $198,800 in fiscal year 2026-2027 and $198,100 in fiscal year 2027-2028 20
to support additional personnel. 21
(7) Additional Hazardous Material Personnel: Included in the above Restricted 22
Funds appropriation is $182,600 in fiscal year 2026 -2027 and $182,000 in fiscal year 23
2027-2028 to support additional personnel. 24
(8) Additional Electrical Personnel: Included in the above Restricted Funds 25
appropriation is $531,900 in fiscal year 2026-2027 and $530,000 in fiscal year 2027-2028 26
to support additional personnel. 27
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(9) Additional Boiler Personn el: Included in the above Restricted Funds 1
appropriation is $182,600 in fiscal year 2026-2027 and $182,000 in fiscal year 2027-2028 2
to support additional personnel. 3
(10) Additional Building Code Enforcement Personnel: Included in the above 4
Restricted Funds appropriation is $299,700 in fiscal year 2026 -2027 and $298,700 in 5
fiscal year 2027-2028 to support additional personnel. 6
7. INSURANCE 7
2026-27 2027-28 8
Restricted Funds 22,745,400 22,525,500 9
(1) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in 10
the above Restricted Funds appropriation is $4,653 in fiscal year 2026 -2027 and $4,746 11
in fiscal year 2027-2028 for each participant for training incentive payments. 12
(2) Property and Casualty Actuarial Contract Increase: Included in the above 13
Restricted Funds appropriation is $225,000 in each fiscal year to support an increase in 14
actuarial contracts. 15
(3) Financial Standards Actuarial Contract Increase: Included in the above 16
Restricted Funds appropriation is $750,000 in each fiscal year to support an increase in 17
actuarial contracts. 18
(4) Restricted Funds Transfer for Medicaid Benefits: Notwithstanding KRS 19
304.2-400(2), there is hereby transferred $290,000,000 in fiscal year 2026 -2027 from the 20
Insurance Regulatory Trust Fund in the Department of Insurance to the Budget Reserve 21
Trust Fund Account (KRS 48.705). It is the intent of the 2026 General Assembly to 22
reserve $290,000,000 for potential appropriation for Medicaid Benefits in the 2027 23
Regular Session if deemed necessary for claims and payments in fiscal year 2026-2027 or 24
fiscal year 2027-2028. 25
(5) Local School District Insurance Coverage Evaluation: The Department of 26
Insurance shall submit a report using information reported by the Kentuc ky Department 27
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of Education pursuant to Part I., C., 2., (8) of this Act to the Interim Joint Committee on 1
Appropriations and Revenue no later than November 1, 2026. The report shall evaluate 2
and determine the adequacy of insurance coverage for each local s chool district, as 3
required under 702 KAR 3:030. 4
(6) Restricted Funds Transfer - Out of Home Care: Notwithstanding KRS 5
304.2-400(2), there is hereby transferred $22,000,000 in each fiscal year from the 6
Insurance Regulatory Trust Fund in the Department of Insurance to the Out of Home 7
Care Replacement Fund. 8
(7) Restricted Funds Transfer - Dental Services: Notwithstanding KRS 304.2-9
400(2), there is hereby transferred $8,000,000 in each fiscal year from the Insurance 10
Regulatory Trust Fund in the Department of Insurance to Medicaid Benefits. 11
8. CLAIMS AND APPEALS 12
2026-27 2027-28 13
General Fund 2,124,900 2,083,300 14
Restricted Funds 1,279,800 1,274,400 15
Federal Funds 771,900 773,500 16
TOTAL 4,176,600 4,131,200 17
(1) Administrative Expenses and Claims: Notwithstanding KRS 304.2 -400(2), 18
excess Restricted Funds from the Department of Insurance shall be transferred to the 19
Crime Victims' Compensation Fund and made available to support administrative 20
expenses and claims. 21
(2) Victims of Crime: Included in the above appropriations is sufficient funding 22
to implement and carry out the provisions of 2024 Ky. Acts ch. 67. 23
TOTAL - PUBLIC PROTECTION CABINET 24
2026-27 2027-28 25
General Fund 2,376,000 5,365,300 26
Restricted Funds 97,113,200 92,668,000 27
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Federal Funds 1,991,300 1,992,900 1
TOTAL 101,480,500 100,026,200 2
M. TOURISM, ARTS AND HERITAGE CABINET 3
Budget Units 4
1. SECRETARY 5
2026-27 2027-28 6
General Fund 3,427,400 3,655,500 7
Restricted Funds 20,616,900 19,574,400 8
TOTAL 24,044,300 23,229,900 9
(1) Kentucky Mountain Regional Recreation Authority: Restricted Funds in 10
the amount of $1,500,000 in each fiscal year shall be transferred to the Department for 11
Local Government from taxes collected pursuant to KRS 142.400(2) to support the 12
Kentucky Mountain Regional Recreation Authority. 13
2. ARTISANS CENTER 14
2026-27 2027-28 15
General Fund 1,227,100 1,233,400 16
Restricted Funds 1,242,100 1,217,000 17
TOTAL 2,469,200 2,450,400 18
(1) Feasibility Study: The cabin et shall coordinate with the Transportation 19
Cabinet to conduct a feasibility study on the Kentucky Artisan Center’s sustainability and 20
its potential acquisition by Berea College and the City of Berea and provide a report 21
regarding its findings to the Inter im Joint Committee on Appropriations and Revenue by 22
July 1, 2027. 23
3. TOURISM 24
2026-27 2027-28 25
General Fund 3,461,300 3,431,100 26
Restricted Funds 72,700 72,700 27
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TOTAL 3,534,000 3,503,800 1
4. PARKS 2
2026-27 2027-28 3
General Fund 64,177,700 61,215,200 4
Restricted Funds 48,157,300 50,688,200 5
TOTAL 112,335,000 111,903,400 6
(1) Park Capital Maintenance and Renovation Fund: Notwithstanding KRS 7
148.810, no transfer to the Park Capital Maintenance and Renovation Fu nd shall be 8
made. 9
(2) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in 10
the above Restricted Funds appropriation is $4,653 in fiscal year 2026 -2027 and $4,746 11
in fiscal year 2027-2028 for each participant for training incentive payments. 12
(3) Parks Capital Project Tracking Plan and Report: The Department of Parks 13
shall establish a project tracking plan and prepare a report on capital projects authorized 14
in 2024 Ky. Acts ch. 175, Part II, K., 2., including but not limited to the projects funded, 15
the current status of each project and projected completion date, the amount expended on 16
each project, and filled positions associated with the projects. The Department of Parks 17
shall submit this report on a quarterly basis beginning August 1, 202 4, to the Interim 18
Joint Budget Review Subcommittee on Economic Development, Tourism, and 19
Environmental Protection. 20
5. HORSE PARK COMMISSION 21
2026-27 2027-28 22
General Fund 1,701,300 1,666,900 23
Restricted Funds 12,801,700 12,964,300 24
TOTAL 14,503,000 14,631,200 25
(1) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in 26
the above Restricted Funds appropriation is $4,653 in fiscal year 2026 -2027 and $4,746 27
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in fiscal year 2027-2028 for each participant for training incentive payments. 1
6. STATE FAIR BOARD 2
2026-27 2027-28 3
General Fund 6,761,700 6,856,800 4
Restricted Funds 58,050,000 60,317,600 5
TOTAL 64,811,700 67,174,400 6
(1) State Fair Board Property Improvements: Notwithstanding any statute to 7
the contrary, the State Fair Board shall give preference to Kentucky businesses to make 8
improvements to State Fair Board properties for hotel development. The Board shall 9
recommend the participation of Kentucky-based businesses and shall also recommend the 10
participation of other Kentucky-based businesses offering solutions to accomplish the 11
goal of improving hotel development. For the purposes of this subsection, "Kentucky -12
based business" means a business that has employees working in Kentucky and that 13
operates a principal execut ive office in Kentucky from which those employees, other 14
offices, and affiliated entities are directed and controlled. 15
(2) Public-Private Partnerships: Notwithstanding KRS 45A.077(8) and Part II, 16
(8) of this Act, the utilization of the public -private partnership delivery method for State 17
Fair Board projects of at least $25,000,000 does not need to be explicitly authorized by 18
the General Assembly. 19
(3) Kentucky Exposition Center Facility Expansion & Staffing: Included in 20
the above Restricted Funds appropriati ons is $1,720,600 in fiscal year 2026 -2027 and 21
$3,740,100 in 2027 -2028 to support the Kentucky Exposition Center facility expansion 22
and staffing. 23
(4) Rental Services and Increased Contract Costs: Included in the above 24
Restricted Funds appropriations is $95 0,500 in each fiscal year to support rental services 25
and increased contract costs. 26
7. FISH AND WILDLIFE RESOURCES 27
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2026-27 2027-28 1
Restricted Funds 57,212,300 56,566,200 2
Federal Funds 27,415,400 27,769,800 3
TOTAL 84,627,700 84,336,000 4
(1) Fish and Wildlife Resources Peace Officers' Stipend: Notwithstanding 5
KRS 15.460(1), included in the above Restricted Funds appropriation is $4,653 in fiscal 6
year 2026 -2027 and $4,746 in fiscal year 2027 -2028 for each participant for training 7
incentive payments. 8
(2) Fees-in-Lieu-of Stream Mitigation Reporting: The Department of Fish and 9
Wildlife Resources shall develop a report of all projects managed by the Fees -in-Lieu-of 10
Stream Mitigation Program. The Department shall present this report to the Interim Joint 11
Committee on Tourism, Small Business, and Information Technology by August 1 of 12
each fiscal year. 13
8. HISTORICAL SOCIETY 14
2026-27 2027-28 15
General Fund 7,752,700 7,826,500 16
Restricted Funds 464,600 363,400 17
Federal Funds 122,000 122,000 18
TOTAL 8,339,300 8,311,900 19
9. ARTS COUNCIL 20
2026-27 2027-28 21
General Fund 1,776,000 1,747,000 22
Restricted Funds 76,400 68,200 23
Federal Funds 827,800 834,800 24
TOTAL 2,680,200 2,650,000 25
10. HERITAGE COUNCIL 26
2026-27 2027-28 27
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General Fund 1,747,500 1,737,000 1
Restricted Funds 697,200 660,200 2
Federal Funds 1,054,700 1,070,400 3
TOTAL 3,499,400 3,467,600 4
(1) American Battlefield Trust: Notwithstanding KRS 45.229, any unexpended 5
balance from the appropriation set forth in 2022 Ky. Acts ch. 199, Part I, L., 10., (2) shall 6
not lapse and shall carry forward. 7
11. KENTUCKY CENTER FOR THE ARTS 8
2026-27 2027-28 9
General Fund 597,600 579,000 10
TOTAL - TOURISM, ARTS AND HERITAGE CABINET 11
2026-27 2027-28 12
General Fund 92,630,300 89,948,400 13
Restricted Funds 199,391,200 202,492,200 14
Federal Funds 29,419,900 29,797,000 15
TOTAL 321,441,400 322,237,600 16
N. BUDGET RESERVE TRUST FUND 17
Budget Unit 18
1. BUDGET RESERVE TRUST FUND 19
2026-27 2027-28 20
General Fund 296,581,400 50,413,900 21
PART II 22
CAPITAL PROJECTS BUDGET 23
(1) Capital Construction Fund Appropriations and Reauthorizations: 24
Moneys in the Capital Construction Fund are appropriated for the following capital 25
projects subject to the conditions and procedures in this Act. Items listed without 26
appropriated amounts are previously authorized for which no additional amount is 27
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required. These items are listed in order to continue their current authorization into the 1
2026-2028 fiscal biennium. Unless other wise specified, reauthorized projects shall 2
conform to the original authorization enacted by the General Assembly. 3
(2) Expiration of Existing Line -Item Capital Construction Projects: All 4
appropriations to existing line -item capital construction and informa tion technology 5
projects expire on June 30, 2026, unless specifically reauthorized in this Act with the 6
following exceptions: 7
(a) A construction or purchase contract for the project shall have been awarded 8
by June 30, 2026; 9
(b) Permanent financing or a sho rt-term line of credit sufficient to cover the total 10
authorized project scope shall have been obtained in the case of projects authorized for 11
bonds, if the authorized project completes an initial draw on the line of credit within the 12
fiscal biennium immediately subsequent to the original authorization; and 13
(c) Grant or loan agreements, if applicable, shall have been finalized and properly 14
signed by all necessary parties by June 30, 2026. 15
Notwithstanding the criteria set forth in this subsection and KRS 45.2 29 and 16
45.770(5)(d), funds appropriated to 2022-2024 and 2024-2026 fiscal biennia maintenance 17
pools shall not lapse and shall carry forward. 18
(3) Bond Proceeds Investment Income: Investment income earned from bond 19
proceeds beyond that which is required to s atisfy Internal Revenue Service arbitrage 20
rebates and penalties and excess bond proceeds upon the completion of a bond -financed 21
capital project shall be used to pay debt service according to the Internal Revenue Service 22
Code and accompanying regulations. 23
(4) Appropriations for Projects Not Line -Itemized: Inasmuch as the 24
identification of specific projects in a variety of areas of the state government cannot be 25
ascertained with absolute certainty at this time, amounts are appropriated for specific 26
purposes t o projects which are not individually identified in this Act in the following 27
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areas: Kentucky Infrastructure Authority Water and Sewer projects; Flood Control 1
projects; Repair of State -Owned Dams; Guaranteed Energy Savings Performance 2
Contract projects; We tland and Stream Mitigation projects; maintenance pools; 3
Economic Development projects, which shall include authorization for the High -Tech 4
Construction Pool and the High -Tech Investment Pool; Postsecondary Education pools; 5
Legacy System Modernization Pool; State Schools HVAC Pool; State Schools Safety and 6
Security Pool; State Parks Improvement; Fish and Wildlife Land Acquisition Pool; 7
Kentucky Exposition Center Paving Pool; Wastewater Treatment Upgrades Pool; State 8
Parks Utility Infrastructure Replacement Pool; and State Fair Board Property 9
Improvements. Notwithstanding any statute to the contrary, projects estimated to cost 10
$1,000,000 and over and equipment estimated to cost $200,000 and over shall be reported 11
to the Capital Projects and Bond Oversight Committee. 12
(5) Capital Construction and Equipment Purchase Contingency Account: If 13
funds in the Capital Construction and Equipment Purchase Contingency Account are not 14
sufficient, then expenditures of the fund are to be paid first from the General Fund 15
Surplus Account (KRS 48.700), if available, or from the Budget Reserve Trust Fund 16
Account (KRS 48.705), subject to the conditions and procedures provided in this Act. 17
(6) Emergency Repair, Maintenance, and Replacement Account: If funds in 18
the Emergency Repair, M aintenance, and Replacement Account are not sufficient, then 19
up to $2,500,000 of expenditures of the fund are to be paid first from the General Fund 20
Surplus Account (KRS 48.700), if available, or from the Budget Reserve Trust Fund 21
Account (KRS 48.705), subject to the conditions and procedures provided in this Act. 22
(7) Appropriation-Supported Debt: To lower the cost of borrowing, the 23
agencies identified in KRS 45A.850(1)(a) and (2)(a) are authorized to refinance 24
appropriation-supported debt obligations that have previously been issued and for which 25
the Commonwealth is currently making lease -rental payments to meet the current debt 26
service requirements. Such action is authorized provided that the principal amount of any 27
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such debt obligation is not increased an d the term of the debt obligation is not extended. 1
Any such refinancing shall still be subject to the requirements of KRS 45.750 to 45.810 2
for reporting to the Capital Projects and Bond Oversight Committee. 3
(8) Public-Private Partnerships: Notwithstanding KRS 45.763(3) and 4
45A.077(8), the utilization of the public -private partnership delivery method for projects 5
of at least $1,000,000 shall be authorized by the General Assembly. 6
A. GENERAL GOVERNMENT 7
Budget Units 2026-27 2027-28 8
1. VETERANS' AFFAIRS 9
001. Radcliff Veterans Center HVAC System Replacement Additional 10
Bond Funds 16,000,000 -0- 11
002. Maintenance Pool - 2026-2028 12
Investment Income 1,000,000 1,000,000 13
003. Expand Columbarium Wall - Kentucky Veterans Cemetery Northeast 14
Federal Funds -0- 2,000,000 15
2. KENTUCKY INFRASTRUCTURE AUTHORITY 16
001. KIA Fund A - Federally Assisted Wastewater Program 17
Federal Funds 75,502,000 20,223,000 18
Bond Funds 14,560,000 4,045,000 19
Agency Bonds 30,000,000 -0- 20
TOTAL 120,062,000 24,268,000 21
002. KIA Fund F - Drinking Water Revolving Loan Program 22
Federal Funds 109,906,000 18,294,000 23
Bond Funds 13,124,000 3,659,000 24
Agency Bonds 30,000,000 -0- 25
TOTAL 153,030,000 21,953,000 26
3. MILITARY AFFAIRS 27
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001. Armory Installation Facility Maintenance Pool - 2026-2028 1
Investment Income 4,000,000 4,000,000 2
002. Kentucky Youth Challenge Academies Maintenance Pool - 2026-2028 3
Investment Income 1,000,000 1,000,000 4
003. Bluegrass Station Facility Maintenance Pool - 2026-2028 5
Restricted Funds 1,000,000 1,000,000 6
004. Construct Wendell H. Ford Regional Training Center Unaccompanied 7
Housing Advanced Skills Training 8
Federal Funds 21,000,000 -0- 9
005. Construct Multi-Purpose Building Bluegrass Station 10
Other Funds 15,000,000 -0- 11
006. Construct Civil Support Team Facility Additional Reauthorization 12
($13,200,000 Federal Funds) 13
Federal Funds 11,400,000 -0- 14
007. Construct New Barracks at Wendell H. Ford Regional Training Center 15
Federal Funds 8,000,000 -0- 16
008. Construct Readiness Center Somerset Additional Reauthorization 17
($24,750,000 Federal Funds, $8,259,000 Bond Funds) 18
Federal Funds -0- 4,898,000 19
Investment Income -0- 1,633,000 20
TOTAL -0- 6,531,000 21
009. Construct Jackson Field Maintenance Shop Additional Reauthorization 22
($15,000,000 Federal Funds) 23
Federal Funds 5,000,000 -0- 24
010. Ashland Armory Restoration Phase 1 25
Federal Funds 2,000,000 -0- 26
Investment Income 2,000,000 -0- 27
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TOTAL 4,000,000 -0- 1
011. Construct Armory 4 Frankfort Additional Reau thorization ($3,000,000 2
Federal Funds, $1,000,000 Bond Funds) 3
Federal Funds 2,000,000 -0- 4
Investment Income 2,000,000 -0- 5
TOTAL 4,000,000 -0- 6
012. Demolish Bluegrass Station Boiler Plant 7
Restricted Funds 4,000,000 -0- 8
013. Construct and Extend Electric Bluegrass Station 9
Restricted Funds 3,500,000 -0- 10
014. Construct Fitness Center Facility Wendell H. Ford Regional Training Center 11
Additional Reauthorization ($5,000,000 Federal Funds) 12
Federal Funds 3,000,000 -0- 13
015. Kentucky Army National Guard Training Site Master Plan 14
Federal Funds 2,000,000 -0- 15
016. Construct Road Improvements Bluegrass Station 16
Restricted Funds 1,500,000 -0- 17
017. Construct New Barracks at Harold L. Disney Training Site Additional 18
Reauthorization ($3,000,000 Federal Funds) 19
Federal Funds 1,000,000 -0- 20
018. Construct Harold L. Disney Training Site Drainage Improvements 21
Reauthorization ($2,000,000 Federal Funds) 22
019. Construct Improve Sewer System Bluegrass Station Reauthorization 23
($5,000,000 Restricted Funds) 24
020. Extension of Utilities Wendell H. Ford Regional Training Center 25
Reauthorization ($2,000,000 Federal Funds) 26
021. Construct Support Building Wendell H. Ford Regional Training Center 27
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Reauthorization ($3,000,000 Federal Funds) 1
4. DEPARTMENT FOR LOCAL GOVERNMENT 2
001. Flood Control Local Match 3
Investment Income 6,000,000 6,000,000 4
5. ATTORNEY GENERAL 5
001. Franklin County - Lease 6
002. Upgrade Technology Additional Reauthorization ($2,000,000 Bond Funds) 7
Investment Income 600,000 -0- 8
6. COMMONWEALTH'S ATTORNEYS 9
001. Jefferson County - Lease 10
7. TREASURY 11
001. Replace HVAC Leibert Units 12
Investment Income 354,000 -0- 13
002. Xerox Check Printer - Secondary 14
Investment Income 66,000 -0- 15
8. AGRICULTURE 16
001. Large Capacity Scale Trucks 17
Restricted Funds 800,000 -0- 18
002. Franklin County - Lease 19
9. KENTUCKY PUBLIC PENSIONS AUTHORITY 20
001. Pension Administration System Technology Modernization - Planning - Phase 21
I 22
Restricted Funds -0- 15,000,000 23
10. OCCUPATIONAL AND PROFESSIONAL BOARDS AND COMMISSIONS 24
a. Nursing 25
001. Jefferson County - Lease 26
11. KENTUCKY RIVER AUTHORITY 27
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001. Renovate Lock 5 1
Restricted Funds -0- 4,200,000 2
002. Maintenance Pool - 2026-2028 3
Restricted Funds 2,000,000 2,000,000 4
003. Locks 2 and 3 Upper Guide Wall Repair Reauthorization ($4,131,000 5
Restricted Funds) 6
004. Design and Repair Dam 7 Reauthorization ($6,400,000 Restricted Funds) 7
12. SCHOOL FACILITIES CONSTRUCTION COMMISSION 8
001. Offers of Assistance - 2024-2026 Reauthorization and Reallocation 9
($16,309,000 Bond Funds) 10
Bond Funds 23,691,000 -0- 11
(1) Reauthorization and Reallocation: The above project is authorized from a 12
reallocation of the projects set forth in 2024 Ky. Acts ch. 175, Part II, A., 10., 005. 13
002. School Facilities Construction Commission Reauthorization ($89,710,000 14
Bond Funds) 15
B. ECONOMIC DEVELOPMENT CABINET 16
Budget Unit 2026-27 2027-28 17
1. ECONOMIC DEVELOPMENT 18
(1) Economic Development Bond Issues: Before any economic development 19
bonds are issued, the proposed bond issue shall be approved by the Secretary of the 20
Finance and Administration Cabinet and the State Property and Buildings Commission 21
under KRS 56.440 to 56.590. In addition to the terms and conditions of KRS 154.12 -100, 22
administration of the Economic Development Bond Program by the Secretary of the 23
Cabinet for Economic Development is subject to the following guideline: project 24
selection shall be documented when presented to the Secretary of the Finance and 25
Administration Cabinet. Included in the documentation shall be the rationale for selection 26
and expected economic development impact. 27
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(2) Use of New Economy Funds: Notwithstanding KRS 1 54.12-100, 154.12 -1
278(4) and (5), and 154.20 -035, the Secretary of the Cabinet for Economic Development 2
may use funds appropriated in the Economic Development Fund Program, High -Tech 3
Construction/Investment Pool, and the Kentucky Economic Development Finan ce 4
Authority Loan Pool interchangeably for economic development projects. 5
001. Economic Development Bond Programs - 2026-2028 6
Bond Funds 5,000,000 5,000,000 7
002. High-Tech Construction/Investment Pool - 2026-2028 8
Bond Funds 5,000,000 5,000,000 9
003. Kentucky Economic Development Finance Authority Loan Pool - 2026-2028 10
Bond Funds 5,000,000 5,000,000 11
C. DEPARTMENT OF EDUCATION 12
Budget Units 2026-27 2027-28 13
1. OPERATIONS AND SUPPORT SERVICES 14
001. Maintenance Pool - 2026-2028 15
Investment Income 2,000,000 1,100,000 16
2. LEARNING AND RESULTS SERVICES 17
001. State Schools Electrical Upgrades 18
Bond Funds 5,150,000 -0- 19
002. State Schools Lighting Upgrades 20
Bond Funds 2,066,000 -0- 21
D. EDUCATION AND LABOR CABINET 22
Budget Units 2026-27 2027-28 23
1. GENERAL ADMINISTRATION AND PROGRAM SUPPORT 24
001. Maintenance Pool - 2026-2028 25
Investment Income 2,000,000 2,000,000 26
2. KENTUCKY EDUCATIONAL TELEVISION 27
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001. Maintenance Pool - 2026-2028 1
Investment Income 750,000 750,000 2
002. KET Capitol Production Center Maintenance Pool - 2026-2028 3
Investment Income 500,000 500,000 4
3. LIBRARIES AND ARCHIVES 5
a. General Operations 6
001. Franklin County - Lease 7
4. WORKFORCE DEVELOPMENT 8
001. Maintenance Pool - 2026-2028 9
Investment Income 700,000 700,000 10
002. Hardin County - Lease 11
003. Kenton County - Lease 12
5. DISABILITY DETERMINATIONS 13
001. Franklin County - Lease 14
E. ENERGY AND ENVIRONMENT CABINET 15
Budget Units 2026-27 2027-28 16
1. SECRETARY 17
001. Maintenance Pool - 2026-2028 18
Investment Income 500,000 500,000 19
2. ENVIRONMENTAL PROTECTION 20
001. State-Owned Dam Repair - 2026-2028 21
Bond Funds 21,060,000 -0- 22
002. State Superfund Sites - 2026-2028 23
Investment Income 1,000,000 1,000,000 24
3. NATURAL RESOURCES 25
001. Replace Unsafe Fire Equipment 26
Restricted Funds 1,556,000 -0- 27
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F. FINANCE AND ADMINISTRATION CABINET 1
Budget Units 2026-27 2027-28 2
1. CONTROLLER 3
001. Upgrade & Enhancement eMARS Systems Additional 4
Bond Funds 3,765,000 -0- 5
2. FACILITIES AND SUPPORT SERVICES 6
001. Maintenance Pool - 2026-2028 7
Investment Income 7,500,000 7,500,000 8
002. Renovate Cabinet for Human Resources Phase 2 9
Investment Income 8,000,000 -0- 10
003. Guaranteed Energy Savings Performance Contracts 11
004. Restore Old State Capitol Annex 12
Bond Funds 37,100,000 -0- 13
005. Deferred Maintenance Historic Properties 14
Investment Income 3,000,000 -0- 15
006. Asphalt Pool 16
Investment Income 1,500,000 -0- 17
007. Roof Pool 18
Investment Income 2,000,000 -0- 19
008. Replace Capitol Parking Structure 20
Bond Funds 126,000,000 -0- 21
009. Replace Capitol Terraces 22
Bond Funds 42,000,000 -0- 23
010. Capitol Annex Renovation Additional Reauthorization ($168,000,000 Bond 24
Funds) 25
Bond Funds 175,000,000 -0- 26
3. COMMONWEALTH OFFICE OF TECHNOLOGY 27
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001. Kentucky from Above 1
Investment Income 6,000,000 6,000,000 2
002. Enterprise Application and AI Inventory System 3
Investment Income 4,000,000 2,000,000 4
003. Alternate Data Center - Lease 5
G. HEALTH AND FAMILY SERVICES CABINET 6
Budget Units 2026-27 2027-28 7
1. GENERAL ADMINISTRATION AND PROGRAM SUPPORT 8
001. Maintenance Pool - 2026-2028 9
Investment Income 10,700,000 10,700,000 10
2. BEHAVIORAL HEALTH, DEVELOPMENTAL AND INTELLECTUAL 11
DISABILITIES 12
001. Oakwood Renovate/Replace Cottages Phase IV 13
Investment Income 12,616,000 -0- 14
002. Western State Nursing Facility Renovations II 15
Investment Income 6,621,000 -0- 16
003. Hazelwood Upgrade Elevators 17
Investment Income 2,880,000 -0- 18
004. Western State Hospital Repair/Replace Cooling Towers 19
Investment Income 1,920,000 -0- 20
3. PUBLIC HEALTH 21
001. Jefferson County - Lease 22
4. COMMUNITY BASED SERVICES 23
001. Kenton County - Lease 24
002. Fayette County - Lease 25
003. Warren County - Lease 26
004. Daviess County - Lease 27
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005. Perry County - Lease 1
006. Boone County - Lease 2
007. Hardin County - Lease 3
008. Boyd County - Lease 4
009. Campbell County - Lease 5
010. Johnson County - Lease 6
011. Floyd County - Lease 7
012. Shelby County - Lease 8
013. Greenup County - Lease 9
014. Muhlenberg County - Lease 10
015. Madison County - Lease 11
016. Marshall County - Lease 12
017. Harlan County - Lease 13
018. Pulaski County - Lease 14
019. Jefferson County - Lease 15
H. JUSTICE AND PUBLIC SAFETY CABINET 16
Budget Units 2026-27 2027-28 17
1. JUSTICE ADMINISTRATION 18
001. Northern Kentucky Medical Examiners Office - Lease 19
2. CRIMINAL JUSTICE TRAINING 20
001. Construct New Flat Track - Madisonville 21
Restricted Funds -0- 13,101,000 22
002. Maintenance Pool - 2026-2028 23
Restricted Funds 4,500,000 4,500,000 24
3. JUVENILE JUSTICE 25
001. Design Female Detention Facility - Central Kentucky 26
Bond Funds -0- 4,500,000 27
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002. Maintenance Pool - 2026-2028 1
Investment Income 7,200,000 7,200,000 2
003. Franklin County - Lease 3
4. STATE POLICE 4
001. Maintenance Pool - 2026-2028 5
Investment Income 6,500,000 6,500,000 6
002. Posts 7 (Richmond) and 10 (Harlan) Construction Additional 7
Investment Income 8,586,000 -0- 8
003. Northern Kentucky Crime Lab - Lease 9
5. CORRECTIONS 10
a. Adult Correctional Institutions 11
001. Maintenance Pool - 2026-2028 12
Investment Income 20,000,000 20,000,000 13
002. Mechanical, Electrical, Plumbing Upgrades and Replacement Pool 14
Investment Income 10,000,000 10,000,000 15
003. Demolition Kentucky State Reformatory Additional Reauthorization and 16
Reallocation ($9,776,000 Bond Funds) 17
Bond Funds 17,010,000 -0- 18
(1) Reauthorization and Reallocation: The above project is authorized from a 19
reallocation of the project set forth in 2018 Ky. Acts ch. 169, Part II, H., 4., a., 003. 20
004. Replace Kentucky State Penitentiary - Utilities Infrastructure Additional 21
Investment Income 15,758,000 -0- 22
005. Repair Northpo int Training Center - Exterior Dorms Masonry Tuckpoint 23
Additional 24
Bond Funds 11,787,000 -0- 25
006. Renovate Northpoint Training Center - Restricted Housing Unit Additional 26
Investment Income 3,500,000 -0- 27
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007. Southeast State Correctional Complex - Lease 1
b. Community Services and Local Facilities 2
001. Campbell County - Lease 3
002. Fayette County - Lease 4
6. PUBLIC ADVOCACY 5
001. Franklin County - Lease 6
002. Fayette County - Lease 7
003. Jefferson County - Lease 8
I. PERSONNEL CABINET 9
Budget Unit 2026-27 2027-28 10
1. GENERAL OPERATIONS 11
001. Enterprise Human Resources Information System Reauthorization and 12
Reallocation ($10,351,800 Bond Funds) 13
Bond Funds 9,848,000 130,869,000 14
(1) Reauthorization and Reallocation: The above project is authorized from a 15
reallocation of the projects set forth in 2016 Ky. Acts ch. 149, Part II, F., 1., 001 and 16
2024 Ky. Acts ch. 175, Part II, A., 11., 002. 17
J. POSTSECONDARY EDUCATION 18
(1) Postsecondary Education Asset Preservation Pool: The Postsecondary 19
Education Asset Preservation Pool provides funding for individual asset preservation, 20
renovation, and maintenance projects at Kentucky’s public postsecondary institutions i n 21
Education, General, and state -owned and operated residential housing facilities for fixed 22
asset pedestrian and student parking areas, and for the razing of university -owned 23
buildings. Capital projects as defined in KRS 45.750(1)(f) are hereby authorized from 24
these funds or combination of funds thereof and shall be reported to the Capital Projects 25
and Bond Oversight Committee. 26
Budget Units 2025-26 2026-27 2027-28 27
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1. KENTUCKY HIGHER EDUCATION STUDENT LOAN CORPORATION 1
001. Jefferson County - Lease 2
2. EASTERN KENTUCKY UNIVERSITY 3
001. Asset Preservation Pool - 2026-2028 4
Bond Funds -0- 10,000,000 8,189,000 5
002. Construct Health Innovations Center 6
Agency Bonds -0- 330,000,000 -0- 7
003. Construct University Hotel and Conference Center 8
Other Funds -0- 130,000,000 -0- 9
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 10
004. IT Hardware Software Networking Systems Pool 11
Restricted Funds -0- 24,000,000 -0- 12
005. Maintenance Pool - 2026-2028 13
Restricted Funds -0- 20,000,000 -0- 14
006. Aviation Acquisition Pool - 2026-2028 15
Restricted Funds -0- 5,000,000 -0- 16
Bond Funds -0- 10,000,000 -0- 17
TOTAL -0- 15,000,000 -0- 18
007. Property Acquisitions Pool 19
Restricted Funds -0- 5,000,000 -0- 20
Other Funds -0- 5,000,000 -0- 21
TOTAL -0- 10,000,000 -0- 22
008. Upgrade and Improve Residence Halls Pool 23
Restricted Funds -0- 10,000,000 -0- 24
009. Scientific and Research Equipment Pool 25
Restricted Funds -0- 4,000,000 -0- 26
Federal Funds -0- 2,200,000 -0- 27
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Other Funds -0- 2,200,000 -0- 1
TOTAL -0- 8,400,000 -0- 2
010. Repurpose and Renovate Commonwealth Hall 3
Restricted Funds -0- 6,000,000 -0- 4
011. Natural Area Improvement Pool 5
Restricted Funds -0- 1,000,000 -0- 6
012. Improve Campus Pedestrian, Parking and Transportation Pool 7
Reauthorization ($8,000,000 Agency Bonds, $3,000,000 Restricted Funds, $3,000,000 8
Other Funds) 9
013. Athletics Capital Improvements Pool Reauthorization ($25,000,000 Agency 10
Bonds, $25,000,000 Restricted Funds, $25,000,000 Other Funds) 11
014. Maintain/Expand Begley Building Reauthorization ($40,000,000 Agency 12
Bonds) 13
015. Asset Preservation Pool - 2022-2024 Reauthorization ($8,222,000 Restricted 14
Funds) 15
016. Lease - Madison County - Student Housing 16
017. Lease - Madison County - Land 17
018. Lease - Multi-Property-Multi-Use 1 18
019. Lease - Multi-Property-Multi-Use 2 19
020. Lease - New Housing Space 20
021. Lease - Aviation 21
022. Guaranteed Energy Savings Performance Contracts 22
3. KENTUCKY STATE UNIVERSITY 23
001. Asset Preservation Pool - 2026-2028 24
Bond Funds -0- 10,000,000 2,360,000 25
002. Construct Health Sciences Center 26
Federal Funds -0- -0- 4,000,000 27
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Bond Funds -0- -0- 50,000,000 1
TOTAL -0- -0- 54,000,000 2
003. Acquire Land 3
Restricted Funds -0- 1,500,000 -0- 4
Federal Funds -0- 3,500,000 -0- 5
TOTAL -0- 5,000,000 -0- 6
004. Asset Preservation Pool - 2022-2024 Reauthorization ($2,412,000 Restricted 7
Funds) 8
4. MOREHEAD STATE UNIVERSITY 9
001. Asset Preservation Pool - 2026-2028 10
Bond Funds -0- 10,000,000 5,065,000 11
002. Construct New Applied Science Building 12
Bond Funds -0- -0- 79,400,000 13
003. Construct New Residence Hall #3 14
Bond Funds -0- 10,000,000 -0- 15
Agency Bonds -0- 10,000,000 -0- 16
TOTAL -0- 20,000,000 -0- 17
004. Construct New Residence Hall #2 Reauthorization ($40,350,000 Agency 18
Bonds) 19
005. Guaranteed Energy Savings Performance Contracts 20
5. MURRAY STATE UNIVERSITY 21
001. Asset Preservation Pool - 2026-2028 22
Bond Funds -0- 10,000,000 7,073,000 23
002. Construct Emergency Veterinary and Teaching Clinic 24
Agency Bonds -0- 48,500,000 -0- 25
003. Construct/Renovate Dining Facility Additional Reauthorization ($30,000,000 26
Restricted Funds) 27
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Restricted Funds -0- 5,000,000 -0- 1
004. Construct Emergency Generator Docking Station(s) for Residence Halls 2
Restricted Funds -0- 2,000,000 -0- 3
005. Replace Wilson Hall Roof 4
Restricted Funds -0- 1,100,000 -0- 5
006. Replace Alexander Hall Addition Roof 6
Restricted Funds -0- 1,100,000 -0- 7
007. Replace Racer Arena Roof 8
Restricted Funds -0- 1,100,000 -0- 9
008. Replace College Courts Apartments Reauthorization ($15,000,000 Agency 10
Bonds) 11
009. Athletic Facilities Improvements Pool Reauthorization ($20,000,000 12
Restricted Funds, $20,000,000 Agency Bonds) 13
010. Asset Preservation Pool - Residence Halls Reauthorization ($6,000,000 14
Agency Bonds) 15
011. Acquire Agriculture Research Farm Land Reauthorization ($1,254,000 16
Restricted Funds) 17
012. Renovate Residence Hall Interior Reauthorization ($1,674,000 Agency 18
Bonds) 19
013. Renovate Residence Hall Electrical System Reauthorization ($4,369,000 20
Agency Bonds) 21
014. Acquire Property Reauthorization ($4,180,000 Restricted Funds) 22
015. Replace Residence Hall Domestic Water Piping Reauthorization ($1,195,000 23
Agency Bonds) 24
016. Renovate Residence Hall HVAC System Reauthorization ($1,661,000 25
Agency Bonds) 26
017. Guaranteed Energy Savings Performance Contracts 27
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6. NORTHERN KENTUCKY UNIVERSITY 1
001. Asset Preservation Pool - 2026-2028 2
Bond Funds -0- 10,000,000 6,951,000 3
002. US 27 Mixed Use Development 4
Other Funds -0- 200,000,000 -0- 5
(1) Authorization: The above authorization is approved pursuant to KRS 6
45A.077. 7
003. Renovate Business Academic Center 8
Agency Bonds -0- 150,000,000 -0- 9
Other Funds -0- 5,000,000 -0- 10
TOTAL -0- 155,000,000 -0- 11
004. Construct Sports Complex 12
Other Funds -0- 98,500,000 -0- 13
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 14
005. Expand Multi-Purpose Events Center 15
Other Funds -0- 32,000,000 -0- 16
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 17
006. Enhance Online Programs Additional 18
Restricted Funds -0- 9,500,000 -0- 19
007. Upgrade IT Infrastructure Pool - 2026-2028 20
Restricted Funds -0- 2,950,000 -0- 21
008. Replace Recreation Field Turf 22
Restricted Funds -0- 2,000,000 -0- 23
009. Acquire Land/Master Plan 2010 -2012 Reauthorization ($17,500,000 Agency 24
Bonds, $4,000,000 Restricted Funds, $4,000,000 Other Funds) 25
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 26
010. Expand/Renovate Soccer Complex Reauthorization ($16,000,000 Agency 27
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Bonds, $36,000,000 Other Funds) 1
011. Renovate Residence Halls Reauthorization ($15,000,000 Agency Bonds) 2
012. Renew/Renovate Landrum Academic Center Reauthorization ($49,000,000 3
Bond Funds, $3,000,000 Other Funds) 4
013. Renew/Repair Parking Garage Pool Reauthorization ($3,000,000 Agency 5
Bonds) 6
014. Replace Event Center Technology Reauthorization ($4,500,000 Other Funds) 7
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 8
015. Asset Preservation Pool - 2022-2024 Reauthorization ($1,170,3 00 Restricted 9
Funds) 10
016. Guaranteed Energy Savings Performance Contracts 11
7. UNIVERSITY OF KENTUCKY 12
(1) University of Kentucky Acquisitions: Notwithstanding any statute to the 13
contrary, the University of Kentucky or on e of its affiliated corporations, for the benefit 14
of the University’s multifaceted education, healthcare, research, and service mission shall 15
be permitted to assume any and all leases, debt instruments, and liabilities associated with 16
any mergers, acquisit ions, or partnerships that are hereby authorized in the 2026 -2028 17
Budget of the Commonwealth. Assumption of leases and debt instruments shall be 18
reported to the Capital Projects and Bond Oversight Committee. 19
(2) Public-Private Partnerships: Notwithstanding Part II, (8) of this Act, and 20
KRS 45A.077(8), the utilization of the public -private partnership delivery method for 21
projects of at least $25,000,000 does not need to be explicitly authorized by the General 22
Assembly. Pursuant to KRS 45.763(3), all capital projects utilizing the public -private 23
partnership delivery method must be reviewed and approved by the Capital Projects and 24
Bond Oversight Committee after negotiations are complete but prior to beginning work 25
on the project. 26
001. Asset Preservation Pool - 2026-2028 27
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Bond Funds -0- 10,000,000 24,330,000 1
002. Construct/Improve Medical/Administrative Facility 3 Phase 2 2
Restricted Funds -0- 2,000,000,000 -0- 3
003. Construct/Improve Hamburg Medical Park 4
Restricted Funds -0- 300,000,000 -0- 5
Other Funds -0- 500,000,000 -0- 6
TOTAL -0- 800,000,000 -0- 7
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 8
004. Acquire/Improve Medical/Administrative Facility 2 9
Restricted Funds -0- 400,000,000 -0- 10
Other Funds -0- 400,000,000 -0- 11
TOTAL -0- 800,000,000 -0- 12
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 13
005. Construct/Improve Arts and Innovation Complex 14
Restricted Funds -0- 200,000,000 -0- 15
Agency Bonds -0- 175,000,000 -0- 16
Other Funds -0- 400,000,000 -0- 17
TOTAL -0- 775,000,000 -0- 18
(1) Authorization: The above authorization is approved pursuant to KRS 45.763 19
and 45A.077. 20
006. Construct Fan Experience Districts 21
Restricted Funds -0- 75,000,000 -0- 22
Other Funds -0- 625,000,000 -0- 23
TOTAL -0- 700,000,000 -0- 24
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 25
007. Construct/Improve Medical/Administrative Facility 8 26
Restricted Funds -0- 200,000,000 -0- 27
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Other Funds -0- 400,000,000 -0- 1
TOTAL -0- 600,000,000 -0- 2
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 3
008. Construct/Improve Medical/Administrative Facility 7 4
Restricted Funds -0- 300,000,000 -0- 5
Other Funds -0- 300,000,000 -0- 6
TOTAL -0- 600,000,000 -0- 7
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 8
009. Construct Multi-Use Complex 1 9
Restricted Funds -0- 50,000,000 -0- 10
Agency Bonds -0- 50,000,000 -0- 11
Other Funds -0- 500,000,000 -0- 12
TOTAL -0- 600,000,000 -0- 13
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 14
010. Construct/Improve Medical/Administrative Facility 6 15
Other Funds -0- 500,000,000 -0- 16
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 17
011. Construct/Improve Medical/Administrative Facility 5 18
Restricted Funds -0- 500,000,000 -0- 19
012. Construct/Improve Medical/Administrative Facility 4 20
Restricted Funds -0- 500,000,000 -0- 21
013. Acquire/Partnership Medical System 2 22
Restricted Funds -0- 500,000,000 -0- 23
014. Acquire/Improve Medical/Administrative Facility 4 24
Restricted Funds -0- 500,000,000 -0- 25
015. Improve Central Plants/Utilities Infrastructure - Phase 2 26
Restricted Funds -0- 100,000,000 -0- 27
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Other Funds -0- 400,000,000 -0- 1
TOTAL -0- 500,000,000 -0- 2
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 3
016. Construct/Improve Student Housing 4
Restricted Funds -0- 75,000,000 -0- 5
Other Funds -0- 400,000,000 -0- 6
TOTAL -0- 475,000,000 -0- 7
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 8
017. Construct/Improve Utilities Infrastructure Hamburg 9
Restricted Funds -0- 200,000,000 -0- 10
Other Funds -0- 200,000,000 -0- 11
TOTAL -0- 400,000,000 -0- 12
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 13
018. Construct/Improve Utilities Infrastructure UK HealthCare 14
Restricted Funds -0- 200,000,000 -0- 15
Other Funds -0- 200,000,000 -0- 16
TOTAL -0- 400,000,000 -0- 17
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 18
019. Construct/Improve Medical/Administrative Facility 2 19
Restricted Funds -0- 200,000,000 -0- 20
Other Funds -0- 200,000,000 -0- 21
TOTAL -0- 400,000,000 -0- 22
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 23
020. Improve UK HealthCare IT Systems II 24
Restricted Funds -0- 400,000,000 -0- 25
021. Construct Research Facility 26
Restricted Funds -0- 50,000,000 -0- 27
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Federal Funds -0- 65,000,000 -0- 1
Bond Funds -0- 200,000,000 -0- 2
Agency Bonds -0- 50,000,000 -0- 3
TOTAL -0- 365,000,000 -0- 4
022. Acquire/Partnership Medical System 1 5
Restricted Funds -0- 350,000,000 -0- 6
023. Construct/Improve Medical/Administrative Facility 10 7
Restricted Funds -0- 150,000,000 -0- 8
Other Funds -0- 150,000,000 -0- 9
TOTAL -0- 300,000,000 -0- 10
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 11
024. Acquire/Improve Medical/Administrative Facility 1 12
Restricted Funds -0- 300,000,000 -0- 13
025. Improve Campus Parking and Transportation System 14
Restricted Funds -0- 50,000,000 -0- 15
Other Funds -0- 250,000,000 -0- 16
TOTAL -0- 300,000,000 -0- 17
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 18
026. Construct/Improve Dining Facilities 19
Restricted Funds -0- 150,000,000 -0- 20
Other Funds -0- 150,000,000 -0- 21
TOTAL -0- 300,000,000 -0- 22
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 23
027. Improve UK HealthCare Facilities - UK Chandler Hospital 24
Restricted Funds -0- 250,000,000 -0- 25
028. Construct/Improve Parking Facility 1 26
Restricted Funds -0- 125,000,000 -0- 27
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Other Funds -0- 125,000,000 -0- 1
TOTAL -0- 250,000,000 -0- 2
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 3
029. Construct/Improve Academic/Research Facility 2 4
Restricted Funds -0- 250,000,000 -0- 5
030. Construct/Improve Academic/Research Facility 1 6
Restricted Funds -0- 250,000,000 -0- 7
031. Construct/Improve Research/Data Center 8
Other Funds -0- 200,000,000 -0- 9
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 10
032. Expand UK HealthCare IT Systems 11
Restricted Funds -0- 200,000,000 -0- 12
033. Improve Utilities Infrastructure UK St. Claire 13
Restricted Funds -0- 100,000,000 -0- 14
Other Funds -0- 100,000,000 -0- 15
TOTAL -0- 200,000,000 -0- 16
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 17
034. Improve Parking/Transportation Systems UK St. Claire 18
Restricted Funds -0- 100,000,000 -0- 19
Other Funds -0- 100,000,000 -0- 20
TOTAL -0- 200,000,000 -0- 21
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 22
035. Construct/Improve Medical/Administrative Facility 9 23
Restricted Funds -0- 100,000,000 -0- 24
Other Funds -0- 100,000,000 -0- 25
TOTAL -0- 200,000,000 -0- 26
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 27
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036. Construct/Improve Parking/Transportation System Hamburg 1
Other Funds -0- 200,000,000 -0- 2
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 3
037. Improve Utilities Infrastructure UK King's Daughters 4
Restricted Funds -0- 100,000,000 -0- 5
Other Funds -0- 100,000,000 -0- 6
TOTAL -0- 200,000,000 -0- 7
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 8
038. Improve UK King's Daughters Medical Campus 9
Restricted Funds -0- 200,000,000 -0- 10
039. Improve Parking/Transportation Systems UK HealthCare 11
Other Funds -0- 200,000,000 -0- 12
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 13
040. Implement Land Use Plan 1 14
Restricted Funds -0- 200,000,000 -0- 15
041. Construct Recreation/Wellness Center 16
Restricted Funds -0- 100,000,000 -0- 17
Other Funds -0- 100,000,000 -0- 18
TOTAL -0- 200,000,000 -0- 19
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 20
042. Construct/Improve Club Area - Kroger Field 21
Restricted Funds -0- 100,000,000 -0- 22
Other Funds -0- 100,000,000 -0- 23
TOTAL -0- 200,000,000 -0- 24
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 25
043. Construct Digital Village Building 3 26
Restricted Funds -0- 95,000,000 -0- 27
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Other Funds -0- 95,000,000 -0- 1
TOTAL -0- 190,000,000 -0- 2
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 3
044. Construct/Improve Academic/Administrative Facility 1 4
Restricted Funds -0- 150,000,000 -0- 5
Agency Bonds -0- 35,000,000 -0- 6
TOTAL -0- 185,000,000 -0- 7
045. Facilities Renewal and Modernization 8
Restricted Funds -0- 125,000,000 -0- 9
Agency Bonds -0- 40,000,000 -0- 10
TOTAL -0- 165,000,000 -0- 11
046. Construct/Improve UK St. Claire Main Campus 12
Restricted Funds -0- 150,000,000 -0- 13
047. Acquire/Improve Medical/Administrative Facility 5 14
Restricted Funds -0- 150,000,000 -0- 15
048. Construct Cancer/Ambulatory Facility Phase 3 16
Restricted Funds -0- 150,000,000 -0- 17
049. Implement Land Use Plan 2 18
Restricted Funds -0- 150,000,000 -0- 19
050. Acquire E&G Enterprise 2 20
Restricted Funds -0- 150,000,000 -0- 21
051. Acquire E&G Enterprise 1 22
Restricted Funds -0- 150,000,000 -0- 23
052. Construct Hotel/Conference Center 24
Other Funds -0- 150,000,000 -0- 25
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 26
053. Construct/Improve Wildcat Coal Lodge 27
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Restricted Funds -0- 75,000,000 -0- 1
Other Funds -0- 75,000,000 -0- 2
TOTAL -0- 150,000,000 -0- 3
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 4
054. Construct/Improve Academic/Administrative Facility 2 5
Restricted Funds -0- 150,000,000 -0- 6
055. Construct West End Zone Club Space Additional Reauthorization 7
($50,000,000 Other Funds) 8
Restricted Funds -0- 100,000,000 -0- 9
Other Funds -0- 50,000,000 -0- 10
TOTAL -0- 150,000,000 -0- 11
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 12
056. Improve Advanced Science and Technology Commercialization Center 13
Restricted Funds -0- 130,000,000 -0- 14
057. Construct/Improve Academic/Research Facility 4 15
Restricted Funds -0- 130,000,000 -0- 16
058. Improve Singletary Center 17
Restricted Funds -0- 130,000,000 -0- 18
059. Construct/Improve Dental Sciences Building 19
Restricted Funds -0- 130,000,000 -0- 20
060. Construct/Improve Academic/Research Facility 3 21
Restricted Funds -0- 125,000,000 -0- 22
061. Construct/Improve Parking Facility 2 23
Other Funds -0- 125,000,000 -0- 24
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 25
062. Improve Coldstream Research Campus 26
Restricted Funds -0- 60,000,000 -0- 27
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Other Funds -0- 60,000,000 -0- 1
TOTAL -0- 120,000,000 -0- 2
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 3
063. Construct Agriculture Federal Research Facility I 4
Federal Funds -0- 108,000,000 -0- 5
064. Improve State Street Medical Facilities 6
Restricted Funds -0- 100,000,000 -0- 7
065. Improve Site/Civil Infrastructure UK King's Daughters 8
Restricted Funds -0- 100,000,000 -0- 9
066. Improve Building Systems UK King's Daughters 10
Restricted Funds -0- 100,000,000 -0- 11
067. Construct/Improve Building Systems Hamburg 12
Restricted Funds -0- 100,000,000 -0- 13
068. Acquire/Improve Service Core Systems UK King's Daughters 14
Restricted Funds -0- 100,000,000 -0- 15
069. Improve Parking/Transportation Systems UK King's Daughters 16
Restricted Funds -0- 100,000,000 -0- 17
070. Improve Clinical/Ambulatory Services Facilities 18
Restricted Funds -0- 100,000,000 -0- 19
071. Construct/Improve Recreation Services Space 1 20
Restricted Funds -0- 50,000,000 -0- 21
Other Funds -0- 50,000,000 -0- 22
TOTAL -0- 100,000,000 -0- 23
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 24
072. Construct/Improve Research Space 25
Restricted Funds -0- 100,000,000 -0- 26
073. Construct/Improve Athletics Facility 1 27
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Restricted Funds -0- 50,000,000 -0- 1
Other Funds -0- 50,000,000 -0- 2
TOTAL -0- 100,000,000 -0- 3
074. Improve Student Center Space 2 4
Restricted Funds -0- 50,000,000 -0- 5
Other Funds -0- 50,000,000 -0- 6
TOTAL -0- 100,000,000 -0- 7
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 8
075. Construct/Improve Academic/Administrative Facility 3 9
Restricted Funds -0- 100,000,000 -0- 10
076. Construct Equine/Horticulture Campus 11
Restricted Funds -0- 90,000,000 -0- 12
077. Improve Gatton Business and Economics Building 13
Restricted Funds -0- 45,000,000 -0- 14
Agency Bonds -0- 45,000,000 -0- 15
TOTAL -0- 90,000,000 -0- 16
078. Improve Oswald Building 17
Restricted Funds -0- 88,500,000 -0- 18
079. Improve Chemistry/Physics Building 19
Restricted Funds -0- 88,000,000 -0- 20
080. Improve 4-H Camps 21
Restricted Funds -0- 80,000,000 -0- 22
081. Improve Fine Arts Building 23
Restricted Funds -0- 80,000,000 -0- 24
082. Improve King Library 25
Restricted Funds -0- 80,000,000 -0- 26
083. Improve Patterson Hall 27
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Restricted Funds -0- 80,000,000 -0- 1
084. Improve Kastle Hall 2
Restricted Funds -0- 80,000,000 -0- 3
085. Improve Taylor Education Building 4
Restricted Funds -0- 80,000,000 -0- 5
086. Acquire Furnishings/Equipment UK HealthCare 6
Restricted Funds -0- 75,000,000 -0- 7
087. Construct/Improve Site/Civil Infrastructure Hamburg 8
Restricted Funds -0- 75,000,000 -0- 9
088. Construct/Improve Service Core Systems Hamburg 10
Restricted Funds -0- 75,000,000 -0- 11
089. Acquire/Improve Service Core Systems UK HealthCare 12
Restricted Funds -0- 75,000,000 -0- 13
090. Improve Markey Cancer Center Facilities 14
Restricted Funds -0- 75,000,000 -0- 15
091. Improve Building Systems UK HealthCare 16
Restricted Funds -0- 75,000,000 -0- 17
092. Construct Agriculture Research Facility 2 18
Restricted Funds -0- 75,000,000 -0- 19
093. Acquire Equipment/Furnishings Pool - Campus 20
Restricted Funds -0- 75,000,000 -0- 21
094. Construct Agriculture Research Facility 3 22
Restricted Funds -0- 75,000,000 -0- 23
095. Improve Center for Applied Energy Research Facilities 24
Restricted Funds -0- 75,000,000 -0- 25
096. Construct/Improve Academic/Administrative Facility 4 26
Restricted Funds -0- 75,000,000 -0- 27
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097. Upgrade/Renovate/Expand Research Labs 1
Restricted Funds -0- 75,000,000 -0- 2
098. Improve Funkhouser Building 3
Restricted Funds -0- 75,000,000 -0- 4
099. Construct/Improve Alumni Center 5
Restricted Funds -0- 75,000,000 -0- 6
100. Construct/Improve Greek Housing 7
Restricted Funds -0- 36,000,000 -0- 8
Other Funds -0- 36,000,000 -0- 9
TOTAL -0- 72,000,000 -0- 10
101. Improve Willard Medical Education/Science Building 11
Restricted Funds -0- 70,000,000 -0- 12
102. Improve Lexington Theological Seminary Facilities 13
Restricted Funds -0- 70,000,000 -0- 14
103. Construct/Improve CAFE Farm 2 15
Restricted Funds -0- 60,000,000 -0- 16
104. Construct/Improve Childcare Development Facility 17
Restricted Funds -0- 55,000,000 -0- 18
105. Construct/Improve Administrative/Support Building 19
Restricted Funds -0- 55,000,000 -0- 20
106. Construct Tennis Facility 21
Restricted Funds -0- 27,000,000 -0- 22
Other Funds -0- 27,000,000 -0- 23
TOTAL -0- 54,000,000 -0- 24
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 25
107. Improve Campus Core Quadrangle Facilities 26
Restricted Funds -0- 54,000,000 -0- 27
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108. Acquire Land 1
Restricted Funds -0- 50,000,000 -0- 2
109. Acquire/Improve Clinical Facility/Practice 6 3
Restricted Funds -0- 50,000,000 -0- 4
110. Acquire/Improve Medical/Administrative Facility 7 5
Restricted Funds -0- 50,000,000 -0- 6
111. Acquire/Improve Medical/Administrative Facility 6 7
Restricted Funds -0- 50,000,000 -0- 8
112. Improve Medical Pavilion UK St. Claire 9
Restricted Funds -0- 50,000,000 -0- 10
113. Improve IT/Enterprise Systems 1 11
Restricted Funds -0- 50,000,000 -0- 12
114. Improve Business Services Center UK St. Claire 13
Restricted Funds -0- 50,000,000 -0- 14
115. Acquire/Improve Service Core Systems UK St. Claire 15
Restricted Funds -0- 50,000,000 -0- 16
116. Improve Building Systems UK St. Claire 17
Restricted Funds -0- 50,000,000 -0- 18
117. Improve Site/Civil Infrastructure UK HealthCare 19
Restricted Funds -0- 50,000,000 -0- 20
118. Improve UK Good Samaritan Hospital Facilities 21
Restricted Funds -0- 50,000,000 -0- 22
119. Construct/Improve Ambulatory Care 23
Restricted Funds -0- 50,000,000 -0- 24
120. Construct/Improve Patient Support Facility 25
Restricted Funds -0- 50,000,000 -0- 26
121. Construct Agriculture Research Facility - Phase 2 27
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Restricted Funds -0- 50,000,000 -0- 1
122. Improve Research Data Infrastructure 2
Restricted Funds -0- 50,000,000 -0- 3
123. Construct/Improve Academic/Administrative Facility 5 4
Restricted Funds -0- 50,000,000 -0- 5
124. Improve Student Services Space 6
Restricted Funds -0- 50,000,000 -0- 7
125. Improve Health Sciences Research Building 8
Restricted Funds -0- 50,000,000 -0- 9
126. Improve Angliana Facilities 10
Restricted Funds -0- 50,000,000 -0- 11
127. Improve Kroger Field 4 12
Restricted Funds -0- 25,000,000 -0- 13
Other Funds -0- 25,000,000 -0- 14
TOTAL -0- 50,000,000 -0- 15
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 16
128. Purchase/Construct CO2 Capture Process Plant 17
Restricted Funds -0- 1,500,000 -0- 18
Federal Funds -0- 40,000,000 -0- 19
Other Funds -0- 8,500,000 -0- 20
TOTAL -0- 50,000,000 -0- 21
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 22
129. Improve Seaton Center 23
Restricted Funds -0- 50,000,000 -0- 24
130. Decommission Facilities 25
Restricted Funds -0- 50,000,000 -0- 26
131. Improve Kroger Field 3 27
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Restricted Funds -0- 25,000,000 -0- 1
Other Funds -0- 25,000,000 -0- 2
TOTAL -0- 50,000,000 -0- 3
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 4
132. Improve Site/Civil Infrastructure 5
Restricted Funds -0- 50,000,000 -0- 6
133. Improve Arboretum Complex 7
Restricted Funds -0- 50,000,000 -0- 8
134. Construct/Relocate/Replace Greenhouses 9
Restricted Funds -0- 50,000,000 -0- 10
135. Improve Jacobs Science Building 11
Restricted Funds -0- 48,000,000 -0- 12
136. Improve McVey Hall 13
Restricted Funds -0- 48,000,000 -0- 14
137. Improve Gray Design Building 15
Restricted Funds -0- 45,000,000 -0- 16
138. Improve Memorial Hall 17
Restricted Funds -0- 45,000,000 -0- 18
139. Research Equipment Pool 19
Restricted Funds -0- 30,000,000 -0- 20
Federal Funds -0- 15,000,000 -0- 21
TOTAL -0- 45,000,000 -0- 22
140. Construct/Improve Library Depository Facility 23
Restricted Funds -0- 45,000,000 -0- 24
141. Lease/Purchase Enterprise Resource Planning System 25
Restricted Funds -0- 40,000,000 -0- 26
142. Construct/Improve Recreation Services Space 2 27
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Restricted Funds -0- 20,000,000 -0- 1
Other Funds -0- 20,000,000 -0- 2
TOTAL -0- 40,000,000 -0- 3
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 4
143. Construct/Improve Student Success/Academic Facility 1 5
Restricted Funds -0- 40,000,000 -0- 6
144. Improve Building Shell Systems 7
Restricted Funds -0- 40,000,000 -0- 8
145. Construct Teaching Pavilion 9
Restricted Funds -0- 38,000,000 -0- 10
146. Improve Academic Technical Building 11
Restricted Funds -0- 35,000,000 -0- 12
147. Improve Whalen Building and Ba y Facility (Kentucky Advanced 13
Manufacturing) 14
Restricted Funds -0- 35,000,000 -0- 15
148. Construct/Improve Recreation Quad 16
Restricted Funds -0- 35,000,000 -0- 17
149. Construct Support Services Building 18
Restricted Funds -0- 35,000,000 -0- 19
150. Improve Moloney Building 20
Restricted Funds -0- 35,000,000 -0- 21
151. Improve Building Mechanical Systems 22
Restricted Funds -0- 35,000,000 -0- 23
152. Expand Kentucky Geological Survey Well Sample and Core Repository 24
Restricted Funds -0- 35,000,000 -0- 25
153. Lease/Purchase Medical Facility/Practice 6 26
Restricted Funds -0- 30,000,000 -0- 27
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154. Lease/Purchase Medical Facility/Practice 5 1
Restricted Funds -0- 30,000,000 -0- 2
155. Lease/Purchase Medical Facility/Practice 4 3
Restricted Funds -0- 30,000,000 -0- 4
156. Lease/Purchase Medical Facility/Practice 3 5
Restricted Funds -0- 30,000,000 -0- 6
157. Lease/Purchase Medical Facility/Practice 2 7
Restricted Funds -0- 30,000,000 -0- 8
158. Lease/Purchase Medical Facility/Practice 1 9
Restricted Funds -0- 30,000,000 -0- 10
159. Improve Medical Facility 9 11
Restricted Funds -0- 30,000,000 -0- 12
160. Improve Medical Facility 6 13
Restricted Funds -0- 30,000,000 -0- 14
161. Improve Medical Facility 5 15
Restricted Funds -0- 30,000,000 -0- 16
162. Improve Medical Facility 4 17
Restricted Funds -0- 30,000,000 -0- 18
163. Improve Medical Facility 8 19
Restricted Funds -0- 30,000,000 -0- 20
164. Improve Medical Facility 18 21
Restricted Funds -0- 30,000,000 -0- 22
165. Improve Medical Facility 17 23
Restricted Funds -0- 30,000,000 -0- 24
166. Improve Medical Facility 16 25
Restricted Funds -0- 30,000,000 -0- 26
167. Improve Medical Facility 15 27
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Restricted Funds -0- 30,000,000 -0- 1
168. Improve Medical Facility 14 2
Restricted Funds -0- 30,000,000 -0- 3
169. Improve Medical Facility 13 4
Restricted Funds -0- 30,000,000 -0- 5
170. Improve Medical Facility 12 6
Restricted Funds -0- 30,000,000 -0- 7
171. Improve Medical Facility 11 8
Restricted Funds -0- 30,000,000 -0- 9
172. Improve Medical Facility 10 10
Restricted Funds -0- 30,000,000 -0- 11
173. Improve Medical Facility 7 12
Restricted Funds -0- 30,000,000 -0- 13
174. Improve Stuckert Career Center 14
Restricted Funds -0- 30,000,000 -0- 15
175. Construct/Improve CAFE Farm 1 16
Restricted Funds -0- 30,000,000 -0- 17
176. Improve Enterprise Networking 1 18
Restricted Funds -0- 30,000,000 -0- 19
177. Improve Electrical Infrastructure 20
Restricted Funds -0- 28,000,000 -0- 21
178. Improve Library Facility 22
Restricted Funds -0- 27,000,000 -0- 23
179. Improve Mechanical Infrastructure 24
Restricted Funds -0- 26,000,000 -0- 25
180. Improve IT/Enterprise Systems 3 26
Restricted Funds -0- 25,000,000 -0- 27
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181. Improve IT/Enterprise Systems 2 1
Restricted Funds -0- 25,000,000 -0- 2
182. Acquire/Improve Clinical Facility/Practice 5 3
Restricted Funds -0- 25,000,000 -0- 4
183. Acquire/Improve Clinical Facility/Practice 4 5
Restricted Funds -0- 25,000,000 -0- 6
184. Acquire/Improve Clinical Facility/Practice 3 7
Restricted Funds -0- 25,000,000 -0- 8
185. Acquire/Improve Clinical Facility/Practice 2 9
Restricted Funds -0- 25,000,000 -0- 10
186. Acquire/Improve Clinical Facility/Practice 1 11
Restricted Funds -0- 25,000,000 -0- 12
187. Implement Patient Communication System 13
Restricted Funds -0- 25,000,000 -0- 14
188. Construct/Improve Wellness Trial 15
Restricted Funds -0- 25,000,000 -0- 16
189. Construct Meats/Food Development Center Phase 2 17
Restricted Funds -0- 25,000,000 -0- 18
190. Construct/Improve Transformative Learning Center 19
Restricted Funds -0- 25,000,000 -0- 20
191. Improve Peterson Service Building 21
Restricted Funds -0- 25,000,000 -0- 22
192. Improve Barnhart Building 23
Restricted Funds -0- 25,000,000 -0- 24
193. Improve Enterprise Networking 2 25
Restricted Funds -0- 25,000,000 -0- 26
194. Lease/Purchase Enterprise IT Systems 27
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Restricted Funds -0- 25,000,000 -0- 1
195. Improve Student Center Space 3 2
Restricted Funds -0- 25,000,000 -0- 3
196. Improve W.T. Young Facility 4
Restricted Funds -0- 25,000,000 -0- 5
197. Improve Critical Infrastructure Building Systems 6
Restricted Funds -0- 25,000,000 -0- 7
198. Improve Life Safety 8
Restricted Funds -0- 25,000,000 -0- 9
199. Improve Campus Security and Safety Systems 10
Restricted Funds -0- 20,000,000 -0- 11
200. Improve Health Park UK King's Daughters 12
Restricted Funds -0- 20,000,000 -0- 13
201. Improve Site/Civil Infrastructure UK St. Claire 14
Restricted Funds -0- 20,000,000 -0- 15
202. Improve Medical Pavilion UK King's Daughters 16
Restricted Funds -0- 20,000,000 -0- 17
203. Construct UK HealthCare Medical Transport Facility 18
Restricted Funds -0- 20,000,000 -0- 19
204. Improve Campus Security and Safety 20
Restricted Funds -0- 20,000,000 -0- 21
205. Acquire/Improve Data/Infrastructure Systems 22
Restricted Funds -0- 20,000,000 -0- 23
206. Construct/Improve Recreation/Services Space 3 24
Restricted Funds -0- 10,000,000 -0- 25
Other Funds -0- 10,000,000 -0- 26
TOTAL -0- 20,000,000 -0- 27
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(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 1
207. Construct/Improve Academic/Administrative Facility 2 Design 2
Restricted Funds -0- 20,000,000 -0- 3
208. Construct/Improve Academic/Administrative Facility 1 Design 4
Restricted Funds -0- 20,000,000 -0- 5
209. Lease/Purchase Campus IT System 6
Restricted Funds -0- 20,000,000 -0- 7
210. Construct/Improve Machine Lab 8
Restricted Funds -0- 20,000,000 -0- 9
211. Improve White Hall Classroom Building 10
Restricted Funds -0- 20,000,000 -0- 11
212. Improve Athletics Facility 2 12
Restricted Funds -0- 20,000,000 -0- 13
213. Acquire/Improve IT Systems/Infrastructure 14
Restricted Funds -0- 20,000,000 -0- 15
214. Improve Academic Facility 16
Restricted Funds -0- 20,000,000 -0- 17
215. Lease/Purchase Enterprise Network Security 18
Restricted Funds -0- 20,000,000 -0- 19
216. Construct Police Facilities 20
Restricted Funds -0- 20,000,000 -0- 21
217. Acquire/Improve Service Core Systems 22
Restricted Funds -0- 20,000,000 -0- 23
218. Improve Hilary J. Boone Center 24
Restricted Funds -0- 18,000,000 -0- 25
219. Improve Lancaster Aquatic Center 1 26
Restricted Funds -0- 17,000,000 -0- 27
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220. Improve Medical Center Library 1
Restricted Funds -0- 17,000,000 -0- 2
221. Construct/Improve Student Success/Academic Facility 2 3
Restricted Funds -0- 15,000,000 -0- 4
222. Construct/Improve UK HealthCare Hamburg Facilities 5
Restricted Funds -0- 15,000,000 -0- 6
223. Acquire Data Center and Networking Hardware UK HealthCare 7
Restricted Funds -0- 15,000,000 -0- 8
224. Construct/Improve Academic/Administrative Facility 3 Design 9
Restricted Funds -0- 15,000,000 -0- 10
225. Improve Boone Tennis Center 11
Restricted Funds -0- 15,000,000 -0- 12
226. Construct/Improve Athletics Facility 2 13
Restricted Funds -0- 15,000,000 -0- 14
227. Acquire Equipment/Furnishings Pool 15
Restricted Funds -0- 15,000,000 -0- 16
228. Improve Spindletop Hall Facilities 17
Restricted Funds -0- 15,000,000 -0- 18
229. Construct/Fit-up Retail Space 19
Restricted Funds -0- 10,000,000 -0- 20
Other Funds -0- 5,000,000 -0- 21
TOTAL -0- 15,000,000 -0- 22
230. Improve Athletics Facility 3 23
Restricted Funds -0- 15,000,000 -0- 24
231. Improve Multi-Disciplinary Science Building 25
Restricted Funds -0- 15,000,000 -0- 26
232. Lease/Purchase High Performance Computer 27
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Restricted Funds -0- 15,000,000 -0- 1
233. Improve CAFE Motor Pool Building 2
Restricted Funds -0- 14,000,000 -0- 3
234. Construct Agriculture Federal Research Facility II 4
Federal Funds -0- 14,000,000 -0- 5
235. Construct Metal Arts/Digital Media Building 6
Restricted Funds -0- 14,000,000 -0- 7
236. Improve Baseball Facility Phase II 8
Restricted Funds -0- 14,000,000 -0- 9
237. Improve Patterson Office Tower 10
Restricted Funds -0- 12,000,000 -0- 11
238. Improve University Storage Facility 1 12
Restricted Funds -0- 12,000,000 -0- 13
239. Acquire/Improve Clinical/Research Facility 14
Restricted Funds -0- 11,000,000 -0- 15
240. Acquire Telemedicine/Virtual Intensive Care Unit 16
Restricted Funds -0- 10,000,000 -0- 17
241. Renovate/Improve Nursing Units UK HealthCare 18
Restricted Funds -0- 10,000,000 -0- 19
242. Construct/Improve Academic/Administrative Facility 4 Design 20
Restricted Funds -0- 10,000,000 -0- 21
243. Improve Parking Structure 2 Enterprise Data Center 22
Restricted Funds -0- 10,000,000 -0- 23
244. Improve University Storage Facility 2 24
Restricted Funds -0- 10,000,000 -0- 25
245. Improve Soccer/Softball Facility 26
Restricted Funds -0- 10,000,000 -0- 27
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246. Improve Campus Infrastructure 1
Restricted Funds -0- 10,000,000 -0- 2
247. Improve Fume Hood Systems 3
Restricted Funds -0- 10,000,000 -0- 4
248. Improve Scovell Hall 5
Restricted Funds -0- 10,000,000 -0- 6
249. Improve Lancaster Aquatic Center 2 7
Restricted Funds -0- 10,000,000 -0- 8
250. Lease/Purchase Enterprise Infrastructure 9
Restricted Funds -0- 10,000,000 -0- 10
251. Improve Enterprise Cable Infrastructure 11
Restricted Funds -0- 10,000,000 -0- 12
252. Improve Senior Center 13
Restricted Funds -0- 10,000,000 -0- 14
253. Construct/Improve Gymnastics Practice Facility 15
Restricted Funds -0- 10,000,000 -0- 16
254. Improve Memorial Coliseum 17
Restricted Funds -0- 10,000,000 -0- 18
255. Improve Athletics Facility 4 19
Restricted Funds -0- 10,000,000 -0- 20
256. Improve Pence Hall 21
Restricted Funds -0- 10,000,000 -0- 22
257. Improve Division of Laboratory Animal Resources Facilities 23
Restricted Funds -0- 10,000,000 -0- 24
258. Improve Building Electrical Systems 25
Restricted Funds -0- 10,000,000 -0- 26
259. ADA Compliance Pool 27
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Restricted Funds -0- 10,000,000 -0- 1
260. Improve Kroger Field 1 Additional Reau thorization ($15,000,000 Other 2
Funds) 3
Restricted Funds -0- 10,000,000 -0- 4
261. Improve Anderson Tower 5
Restricted Funds -0- 9,000,000 -0- 6
262. Improve Mineral Industries Building 7
Restricted Funds -0- 9,000,000 -0- 8
263. Improve Carnahan House 9
Restricted Funds -0- 8,000,000 -0- 10
264. Acquire/Improve Golf Facility 11
Restricted Funds -0- 8,000,000 -0- 12
265. Construct/Improve Academic/Administrative Facility 5 Design 13
Restricted Funds -0- 7,500,000 -0- 14
266. Improve Medical Plaza 15
Restricted Funds -0- 7,000,000 -0- 16
267. Improve Nutter Training Facility 17
Restricted Funds -0- 7,000,000 -0- 18
268. Lease/Purchase Enterprise Voice Infrastructure 19
Restricted Funds -0- 7,000,000 -0- 20
269. Renovate Space for a Testing Center 21
Restricted Funds -0- 7,000,000 -0- 22
270. Improve Nursing Building 23
Restricted Funds -0- 7,000,000 -0- 24
271. Lease/Purchase Enterprise Call Center System 25
Restricted Funds -0- 7,000,000 -0- 26
272. Improve Medical Behavioral Science Building 27
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Restricted Funds -0- 6,000,000 -0- 1
273. Improve Athletics Facility 6 2
Restricted Funds -0- 6,000,000 -0- 3
274. Improve Athletics Facility 5 4
Restricted Funds -0- 6,000,000 -0- 5
275. Improve Joe Craft Center 6
Restricted Funds -0- 6,000,000 -0- 7
276. Improve Joe Craft Football Practice Facility 8
Restricted Funds -0- 3,000,000 -0- 9
Other Funds -0- 3,000,000 -0- 10
TOTAL -0- 6,000,000 -0- 11
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 12
277. Improve Cooper House 13
Restricted Funds -0- 6,000,000 -0- 14
278. Acquire Data Center and Networking Hardware UK St. Claire 15
Restricted Funds -0- 5,000,000 -0- 16
279. Acquire Data Center and Networking Hardware UK King’s Daughters 17
Restricted Funds -0- 5,000,000 -0- 18
280. Construct/Improve Recreational Playing Surfaces 19
Restricted Funds -0- 5,000,000 -0- 20
281. Construct Athletics Hall of Fame 21
Restricted Funds -0- 5,000,000 -0- 22
282. Improve Sturgill Development Building 23
Restricted Funds -0- 4,000,000 -0- 24
283. Replace Basketball Playing Floors 25
Restricted Funds -0- 3,000,000 -0- 26
284. Improve Athletics Facility 7 27
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Restricted Funds -0- 3,000,000 -0- 1
285. Acquire Transportation Buses 2
Restricted Funds -0- 3,000,000 -0- 3
286. Improve Indoor/Outdoor Track 4
Restricted Funds -0- 3,000,000 -0- 5
287. Construct Cross Country Trail 6
Restricted Funds -0- 3,000,000 -0- 7
288. Construct/Improve Athletics Surfaces 2 8
Restricted Funds -0- 3,000,000 -0- 9
289. Construct/Improve Athletics Surfaces 1 10
Restricted Funds -0- 3,000,000 -0- 11
290. Construct/Improve Medical/Administrative Facility 3 Reauthorization 12
($800,000,000 Agency Bonds) 13
291. Asset Preservation Pool - 2024-2026 Reauthorization ($30,862,000 Agency 14
Bonds) 15
292. Construct Academic Building Reauthorization ($149,000,000 Restricted 16
Funds) 17
293. Construct/Improve Medical/Administrative Facility 1 Reauthorization 18
($300,000,000 Restricted Funds, $500,000,000 Other Funds) 19
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 20
294. Construct Health Education Building Reauthorization ($50,000,000 Agency 21
Bonds) 22
295. Lease - Off Campus 1 23
296. Lease - Off Campus 3 24
297. Lease - Off Campus 4 25
298. Lease - Off Campus 5 26
299. Lease - Off Campus 6 27
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300. Lease - Off Campus 7 1
301. Lease - Off Campus 11 2
302. Lease - Off Campus 12 3
303. Lease - Off Campus 13 4
304. Lease - Off Campus 14 5
305. Lease - Off Campus 15 6
306. Lease - Off Campus 16 7
307. Lease - Off Campus 17 8
308. Lease - Off Campus 18 9
309. Lease - Off Campus 19 10
310. Lease - Off Campus 20 11
311. Lease - Off Campus 21 12
312. Lease - Off Campus 22 13
313. Lease - Off Campus 23 14
314. Lease - Off Campus 24 15
315. Lease - Off Campus 25 16
316. Lease - Off Campus 26 17
317. Lease - Off Campus Housing 1 18
318. Lease - Off Campus Housing 2 19
319. Lease - Health Science Colleges 1 20
320. Lease - Health Science Colleges 2 21
321. Lease - Health Science Colleges 3 22
322. Lease - Off Campus Athletics 1 23
323. Lease - Off Campus Athletics 2 24
324. Lease - Health Affairs Office 3 25
325. Lease - Health Affairs Office 4 26
326. Lease - Health Affairs Office 10 27
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327. Lease - Health Affairs Office 12 1
328. Lease - Health Affairs Office 14 2
329. Lease - Health Affairs Office 15 3
330. Lease - Health Affairs Office 18 4
331. Lease - Health Affairs Office 19 5
332. Lease - Health Affairs Office 20 6
333. Lease - Health Affairs Office 21 7
334. Lease - Health Affairs Office 22 8
335. Lease - Health Affairs Office 24 9
336. Lease - UK HealthCare Off Campus Facility 2 10
337. Lease - UK HealthCare Off Campus Facility 3 11
338. Lease - UK HealthCare Off Campus Facility 5 12
339. Lease - UK HealthCare Off Campus Facility 12 13
340. Lease - UK HealthCare Off Campus Facility 13 14
341. Lease - UK HealthCare Off Campus Facility 14 15
342. Lease - UK HealthCare Off Campus Facility 15 16
343. Lease - UK HealthCare Off Campus Facility 16 17
344. Lease - UK HealthCare Off Campus Facility 17 18
345. Lease - UK HealthCare Off Campus Facility 18 19
346. Lease - UK HealthCare Off Campus Facility 19 20
347. Lease - UK HealthCare Off Campus Facility 20 21
348. Lease - UK HealthCare Off Campus Facility 21 22
349. Lease - UK HealthCare Off Campus Facility 22 23
350. Lease - UK HealthCare Off Campus Facility 23 24
351. Lease - UK HealthCare Off Campus Facility 24 25
352. Lease - UK HealthCare Off Campus Facility 25 26
353. Lease - UK HealthCare Off Campus Facility 26 27
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354. Lease - UK HealthCare Off Campus Facility 27 1
355. Lease - UK HealthCare Off Campus Facility 28 2
356. Lease - UK HealthCare Off Campus Facility 29 3
357. Lease - UK HealthCare Off Campus Facility 30 4
358. Lease - UK HealthCare Off Campus Facility 31 5
359. Lease - UK HealthCare Off Campus Facility 32 6
360. Lease - UK HealthCare Off Campus Facility 33 7
361. Lease - Off Campus 2 8
362. Lease - College of Medicine 1 9
363. Lease - College of Medicine 2 10
364. Lease - Health Affairs Office 1 11
365. Lease - Health Affairs Office 2 12
366. Lease - Health Affairs Office 5 13
367. Lease - Health Affairs Office 6 14
368. Lease - Health Affairs Office 7 15
369. Lease - Health Affairs Office 8 16
370. Lease - Health Affairs Office 9 17
371. Lease - Health Affairs Office 11 18
372. Lease - Health Affairs Office 13 19
373. Lease - Health Affairs Office 16 20
374. Lease - Health Affairs Office 17 21
375. Lease - Health Affairs Office 23 22
376. Lease - UK HealthCare Off Campus Facility 1 23
377. Lease - UK HealthCare Off Campus Facility 4 24
378. Lease - UK HealthCare Off Campus Facility 6 25
379. Lease - UK HealthCare Off Campus Facility 7 26
380. Lease - UK HealthCare Off Campus Facility 8 27
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381. Lease - UK HealthCare Off Campus Facility 9 1
382. Lease - UK HealthCare Off Campus Facility 10 2
383. Lease - UK HealthCare Off Campus Facility 11 3
384. Lease - Off Campus 8 4
385. Lease - Off Campus 9 5
386. Lease - Off Campus 10 6
387. Lease - UK HealthCare Royal Blue Health 1 7
388. Lease - UK HealthCare Royal Blue Health 2 8
389. Lease - UK HealthCare Royal Blue Health 3 9
390. Lease - UK HealthCare Royal Blue Health 4 10
391. Lease - UK HealthCare Royal Blue Health 6 11
392. Lease - UK HealthCare Royal Blue Health 7 12
393. Lease - UK HealthCare Royal Blue Health 8 13
394. Guaranteed Energy Savings Performance Contracts - UK HealthCare 14
395. Guaranteed Energy Savings Performance Contracts 15
8. UNIVERSITY OF LOUISVILLE 16
001. Asset Preservation Pool - 2026-2028 17
Bond Funds -0- 10,000,000 12,077,000 18
002. Construct Resident Hall Public-Private Partnership 19
Other Funds -0- 250,000,000 -0- 20
(1) Authorization: The above authorization is approved pursuant to KRS 45.763 21
and 45A.077. 22
003. Construct Athletics Village 23
Other Funds -0- 150,000,000 -0- 24
004. Construct STEM Building 25
Bond Funds -0- 142,000,000 -0- 26
005. Construct Medical Sciences Research Building 27
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Other Funds -0- 70,000,000 -0- 1
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 2
006. Construct Center for Bioscience 3
Federal Funds -0- 70,000,000 -0- 4
007. Construct Center for Military Health/Biology 5
Federal Funds -0- 70,000,000 -0- 6
008. Construct Natatorium 7
Other Funds -0- 60,000,000 -0- 8
009. Renovate New Vision of Health Building 9
Federal Funds -0- 60,000,000 -0- 10
010. Construct Cybersecurity Center with Enhanced Internet Capabilities 11
Federal Funds -0- 10,000,000 -0- 12
Other Funds -0- 50,000,000 -0- 13
TOTAL -0- 60,000,000 -0- 14
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 15
011. Replace Building Mechanical, Electrical and Plumbing 16
Other Funds -0- 50,000,000 -0- 17
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 18
012. Structural Improvement Pool - 2026-2028 19
Other Funds -0- 40,000,000 -0- 20
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 21
013. Construct Center for AI Excellence 22
Other Funds -0- 29,000,000 -0- 23
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 24
014. Expand Basketball/Lacrosse Practice Facility 25
Other Funds -0- 25,000,000 -0- 26
015. Renovate Cardinal Football Stadium 27
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Other Funds -0- 25,000,000 -0- 1
016. Construct Indoor Facility 2
Other Funds -0- 20,000,000 -0- 3
017. Expand Patterson Stadium/Construct Indoor Facility 4
Other Funds -0- 20,000,000 -0- 5
018. Construct Resident Hall and Visitor Development 6
Agency Bonds -0- 160,000,000 -0- 7
019. Purchase Land Additional Reauthorization ($10,000,000 Agency Bonds) 8
Other Funds -0- 15,000,000 -0- 9
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 10
020. Expand Ulmer Stadium/Construct Indoor Facility 11
Other Funds -0- 15,000,000 -0- 12
021. Construct Kentucky Center for Precision Medicine 13
Federal Funds -0- 12,500,000 -0- 14
022. Enhance Workday Financial Management Software 15
Other Funds -0- 10,000,000 -0- 16
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 17
023. Enhance Research Computing Infrastructure 18
Other Funds -0- 10,000,000 -0- 19
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 20
024. Enhance Content Management System 21
Other Funds -0- 10,000,000 -0- 22
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 23
025. Renovate L&N Arena 24
Other Funds -0- 10,000,000 -0- 25
026. Update, Replace Technology in Athletic Venues 26
Other Funds -0- 10,000,000 -0- 27
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027. Update Green Health Sciences Center Courtyard 1
Other Funds -0- 10,000,000 -0- 2
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 3
028. Campus Code Improvement Pool - 2026-2028 4
Other Funds -0- 10,000,000 -0- 5
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 6
029. Replace Cardinal Stadium Seats 7
Other Funds -0- 10,000,000 -0- 8
030. Renovate Cardinal Park 9
Other Funds -0- 10,000,000 -0- 10
031. Expand and Renovate Wright Natatorium 11
Other Funds -0- 10,000,000 -0- 12
032. Athletic Venue Capital Renewal Pool - 2026-2028 13
Other Funds -0- 10,000,000 -0- 14
033. Expand and Renovate Marshall Center Complex 15
Other Funds -0- 10,000,000 -0- 16
034. Replace Electronic Video Boards 17
Other Funds -0- 10,000,000 -0- 18
035. Construct Defense Supply Chain Security System 19
Federal Funds -0- 10,000,000 -0- 20
036. Construct/Renovate Kentucky Center for Precision Medicine Data and 21
Analytical Systems 22
Federal Funds -0- 9,326,000 -0- 23
037. Construct/Renovate Kentucky Center for Precision Medicine Equipment 24
Federal Funds -0- 8,000,000 -0- 25
038. Renovate Cardinal Stadium Club 26
Other Funds -0- 7,500,000 -0- 27
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039. Construct Athletics Office Building 1
Other Funds -0- 7,500,000 -0- 2
040. Replace Seats in Athletic Venues 3
Other Funds -0- 7,000,000 -0- 4
041. Purchase Network System Enhancements 5
Other Funds -0- 6,000,000 -0- 6
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 7
042. Renovate and Update Student/Athlete Dormitory 8
Other Funds -0- 6,000,000 -0- 9
043. Enhance Security and Firewall System 10
Other Funds -0- 5,000,000 -0- 11
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 12
044. Enhance Computer Processing and Storage 13
Other Funds -0- 5,000,000 -0- 14
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 15
045. Expand and Renovate Tailgate Space 16
Other Funds -0- 5,000,000 -0- 17
046. Expand and Renovate Athletic Parking Lots 18
Other Funds -0- 5,000,000 -0- 19
047. Renovate Gross Anatomy Lab 20
Other Funds -0- 5,000,000 -0- 21
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 22
048. Demolish and Construct Golf Maintenance/Chemical Building 23
Other Funds -0- 5,000,000 -0- 24
049. Renovate Bass Rudd Tennis Center 25
Other Funds -0- 5,000,000 -0- 26
050. Construct Practice Bubble 27
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Other Funds -0- 5,000,000 -0- 1
051. Renovate Lynn Soccer Stadium 2
Other Funds -0- 5,000,000 -0- 3
052. Renovate Trager Football Practice Facility 4
Other Funds -0- 5,000,000 -0- 5
053. Renovate Patterson Baseball Stadium 6
Other Funds -0- 5,000,000 -0- 7
054. Renovate Thornton's Academic Center 8
Other Funds -0- 5,000,000 -0- 9
055. Construct Athletic Grounds Building 10
Other Funds -0- 5,000,000 -0- 11
056. Construct Football Practice Field Lighting 12
Other Funds -0- 5,000,000 -0- 13
057. Upgrade Regional Biocontainment Laboratories 14
Federal Funds -0- 5,000,000 -0- 15
058. Construct Building for Self-Contained Internet Access Point 16
Federal Funds -0- 5,000,000 -0- 17
059. Construct Exit Ramp at Chestnut Street Garage 18
Other Funds -0- 4,000,000 -0- 19
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 20
060. Enhance Workday Human Resources Software 21
Other Funds -0- 4,000,000 -0- 22
061. Update and Replace Equipment in ACCN Studio 23
Other Funds -0- 4,000,000 -0- 24
062. Renovate and Expand ACCN Studio 25
Other Funds -0- 4,000,000 -0- 26
063. Renovate Garvin Brown Boathouse 27
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Other Funds -0- 4,000,000 -0- 1
064. Renovate Parking Structures 2
Other Funds -0- 3,600,000 -0- 3
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 4
065. Purchase Fiber Infrastructure 5
Other Funds -0- 3,500,000 -0- 6
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 7
066. Install Signage, Wayfinding, and Landscaping 8
Other Funds -0- 3,000,000 -0- 9
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 10
067. Expand, Replace and Maintain Grass Practice Fields 11
Other Funds -0- 3,000,000 -0- 12
068. Replace Fiber Pathway from ACCN Studio to Venues 13
Other Funds -0- 3,000,000 -0- 14
069. Renovate and Expand Lee Street Facility 15
Other Funds -0- 3,000,000 -0- 16
070. College of Education Academic Renovation Pool - 2026-2028 17
Other Funds -0- 3,000,000 -0- 18
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 19
071. Renovate Golf Clubhouse - Shelby County 20
Other Funds -0- 3,000,000 -0- 21
072. Upgrade Plumbing and Sanitary Lines - Dental School 22
Other Funds -0- 2,500,000 -0- 23
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 24
073. Resurface and Repair Parking Lot 25
Other Funds -0- 2,500,000 -0- 26
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 27
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074. Construct Belknap Stormwater Mitigation Improvements 1
Other Funds -0- 2,500,000 -0- 2
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 3
075. ADA Building Upgrade Pool - 2026-2028 4
Other Funds -0- 2,000,000 -0- 5
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 6
076. Build Out Space for UofL Departments 7
Other Funds -0- 2,000,000 -0- 8
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 9
077. Replace Artificial Turf Field V 10
Other Funds -0- 2,000,000 -0- 11
078. Replace Artificial Turf Field IV 12
Other Funds -0- 2,000,000 -0- 13
079. Renovate Interfaith Center 14
Other Funds -0- 1,500,000 -0- 15
(1) Authorization: The above authorization is approved pursuant to KRS 45.763. 16
080. Construct Belknap 3rd St & Brandeis Corridor Improvements 17
Restricted Funds -0- 1,112,000 -0- 18
081. Renovate Exterior Envelope Replacement - 55A Reauthorization 19
($20,000,000 Agency Bonds) 20
082. Construct Connector Speed School to Research Park Reauthorization 21
($10,000,000 Agency Bonds) 22
083. Renovate College of Business Academic Space Reauthorization ($15,000,000 23
Agency Bonds) 24
084. Asset Preservation - 2024-2026 Reauthorization ($8,638,000 Agency Bonds) 25
085. Construct Resident Hall Reauthorization ($80,000,000 Agency Bonds) 26
086. Construct Health Sciences Simulation Center and Collaboration Hub 27
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Reauthorization ($20,000,000 Agency Bonds) 1
087. Construct Student Commons and Recreational Fields Reauthorization 2
($12,000,000 Agency Bonds) 3
088. Modernize Steam and Chill Water Plant Reauthorization ($40,000,000 4
Agency Bonds) 5
089. Lease - Medical Center One 6
090. Lease - Nucleus 1 Building 7
091. Lease - University Point 8
092. Lease - Cardinal Towne 9
093. Lease - The Nine at Louisville 10
094. Lease - Province Apartments 11
095. Lease - Trager Institute 12
096. Lease - 1212 S 4th Street, Louisville, KY 13
097. Lease - Liberty Green Community Center 14
098. Lease - West Kentucky Community and Technical College 15
099. Lease - Denny Crum Hall 16
100. Lease - Soccer Stadium 17
101. Lease - Founders Square 18
102. Lease - Rowan Building - A&S Fine Arts 19
103. Lease - Academic Space 1 20
104. Lease - Academic Space 2 21
105. Lease - Arthur Street - Tafel Building 22
106. Lease - Athletic/Student Dormitory 23
107. Lease - Housing Facilities 24
108. Lease - Housing 1 25
109. Lease - Housing 2 26
110. Lease - Housing 3 27
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111. Lease - Housing 4 1
112. Lease - Jefferson County Clinic Space - State of Kentucky 2
113. Lease - Jefferson County - Clinic Space 1 3
114. Lease - Jefferson County - Clinic Space 2 4
115. Lease - Jefferson County - Clinic Space 3 5
116. Lease - Jefferson County - Office Space 1 6
117. Lease - Jefferson County - Office Space 2 7
118. Lease - Jefferson County - Office Space 3 8
119. Lease - Jefferson County - Office Space 4 9
120. Lease - Medical Center One 2 10
121. Lease - Nucleus 1 Building 2 11
122. Lease - Support Space 1 12
123. Guaranteed Energy Savings Performance Contracts 13
9. WESTERN KENTUCKY UNIVERSITY 14
001. Asset Preservation Pool - 2026-2028 15
Bond Funds -0- 10,000,000 9,158,000 16
002. Residential Halls Public-Private Partnership 17
Other Funds 350,000,000 -0- 200,000,000 18
(1) Authorization: The above authorization is approved pursuant to KRS 45.763 19
and 45A.077. 20
003. Acquire Furniture, Fixtures, and Equipment - Media 21
Restricted Funds -0- 20,000,000 -0- 22
004. Renovate Center for Research and Development Phase I 23
Restricted Funds -0- 6,000,000 -0- 24
Other Funds -0- 6,000,000 -0- 25
TOTAL -0- 12,000,000 -0- 26
005. Renovate Space for Exercise Science Program 27
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Restricted Funds -0- 10,000,000 -0- 1
006. Renovate and Expand Clinical Education Complex 2
Other Funds -0- 10,000,000 -0- 3
007. Remove and Replace Student Housing at Farm 4
Other Funds -0- 10,000,000 -0- 5
008. Install Additional Club Seating at Diddle Arena 6
Other Funds -0- 10,000,000 -0- 7
009. Capital Renewal Pool - 2026-2028 8
Restricted Funds -0- 10,000,000 -0- 9
010. Construct Permanent Seating at Houchens Industries – L.T. Smith Stadium 10
Agency Bonds -0- 10,000,000 -0- 11
011. Acquire Fixtures, Furniture, and Equipment - College of Health and Human 12
Services 13
Restricted Funds -0- 8,000,000 -0- 14
012. Expand Track and Field Facilities 15
Other Funds -0- 6,500,000 -0- 16
013. Renovate South Campus 17
Restricted Funds -0- 6,000,000 -0- 18
014. Construct Baseball Grandstand 19
Other Funds -0- 6,000,000 -0- 20
015. Construct State Street Plaza 21
Restricted Funds -0- 6,000,000 -0- 22
016. Acquire Furniture, Fixtures, and Equipment Diddle Arena 23
Other Funds -0- 5,000,000 -0- 24
017. Construct South Plaza 25
Other Funds -0- 5,000,000 -0- 26
018. Acquire Furniture, Fixtures, and Equipment Pool - 2026-2028 27
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Restricted Funds -0- 5,000,000 -0- 1
019. Upgrade Softball/Soccer Facilities and Field 2
Restricted Funds -0- 2,000,000 -0- 3
Other Funds -0- 2,000,000 -0- 4
TOTAL -0- 4,000,000 -0- 5
020. Renovate Owensboro Campus for the Certified Registered Nurse Anesthetist 6
(CRNA) Program 7
Restricted Funds -0- 3,000,000 -0- 8
021. Renovate Medical Center Health Complex for the Certified Registered Nu rse 9
Anesthetist (CRNA) Program 10
Restricted Funds -0- 3,000,000 -0- 11
022. Purchase Property/Parking and Street Improvements 12
Restricted Funds -0- 3,000,000 -0- 13
023. Purchase Property for Campus Expansion 14
Restricted Funds -0- 3,000,000 -0- 15
024. Renovate State/Normal Street Properties 16
Restricted Funds -0- 2,000,000 -0- 17
025. Replace Retractable Seating at Diddle Arena 18
Restricted Funds -0- 1,000,000 -0- 19
026. Replace Field Lighting at Nick Denes Field 20
Restricted Funds -0- 1,000,000 -0- 21
027. Construct Parking Structure IV Reauthorization ($35,000,000 Agency Bonds) 22
028. Lease - Alumni Center 23
029. Lease - Parking Garage 24
030. Lease - Nursing/Physical Therapy 25
031. Lease - Campus Flats 26
032. Guaranteed Energy Savings Performance Contracts 27
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10. KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM 1
001. Asset Preservation Pool - 2026-2028 2
Bond Funds -0- 10,000,000 24,798,000 3
002. Construct Student Services Building Downtown Phase I - Jefferson CTC 4
Agency Bonds -0- 47,300,000 -0- 5
003. Construct Prison Education Program - Bluegrass CTC 6
Bond Funds -0- 42,000,000 -0- 7
004. Procure Aviation Equipment - Madisonville CC 8
Bond Funds -0- 6,000,000 -0- 9
005. Property Acquisition Pool - Fire Commission 10
Restricted Funds -0- 5,000,000 -0- 11
006. KCTCS Property Acquisition Pool - 2026-2028 12
Restricted Funds -0- 5,000,000 -0- 13
007. KCTCS Equipment Pool - 2026-2028 14
Restricted Funds -0- 2,500,000 -0- 15
Federal Funds -0- 2,500,000 -0- 16
TOTAL -0- 5,000,000 -0- 17
008. Construct District 4 Training Space - Fire Commission 18
Restricted Funds -0- 4,200,000 -0- 19
009. Construct District 5 Training Space - Fire Commission 20
Restricted Funds -0- 4,200,000 -0- 21
010. Acquire Harrison County ATC - Maysville CTC 22
Restricted Funds -0- 4,000,000 -0- 23
011. Construct District 14 Storage Space - Fire Commission 24
Restricted Funds -0- 3,400,000 -0- 25
012. Improve Exterior Southwest Phase I - Jefferson CTC 26
Restricted Funds -0- 2,000,000 -0- 27
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013. Procure Training Equipment - Fire Commission 1
Restricted Funds -0- 2,000,000 -0- 2
014. Install Exterior Signage - West Kentucky CTC 3
Restricted Funds -0- 1,200,000 -0- 4
015. Renovate Broadway Building Facade - Jefferson CTC 5
Restricted Funds -0- 1,200,000 -0- 6
016. Construct Multicultural Center Atrium Enclosure - Jefferson CTC 7
Reauthorization ($3,000,000 Restricted Funds) 8
017. Asset Preservation Pool - 2022-2024 Reauthorization ($26,890,000 Restricted 9
Funds) 10
018. Lease - Jefferson CTC - Bullitt County Campus 11
019. Lease - Jefferson CTC - Jefferson Education Center 12
K. PUBLIC PROTECTION CABINET 13
Budget Unit 2026-27 2027-28 14
1. HOUSING, BUILDINGS AND CONSTRUCTION 15
001. Modernize Application System Reauthorization ($3,588,000 Restricted 16
Funds) 17
L. TOURISM, ARTS AND HERITAGE CABINET 18
Budget Units 2026-27 2027-28 19
1. SECRETARY 20
001. Northern Kentucky Convention Center Renovation and Expansion 21
Restricted Funds 18,000,000 -0- 22
Agency Bonds 40,000,000 -0- 23
TOTAL 58,000,000 -0- 24
(1) Procurement Authority: Notwithstanding any statute or administrative 25
regulation to the contrary, the Northern Kentucky Convention Center Corporation, 26
created under KRS 154.90 -010, is authorized to act on behalf of the Commonwealth in 27
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lieu of the Finance and Administration Cabinet fo r all planning, design, procurement, 1
construction execution and administration, and completion activities for the renovation 2
and modernization for the Northern Kentucky Convention Center. The Secretary of the 3
Finance and Administration Cabinet shall mainta in authority to determine any protests or 4
controversies under KRS 45A.285 with respect to the project. 5
2. ARTISANS CENTER 6
001. Maintenance Pool - 2026-2028 7
Investment Income 500,000 500,000 8
3. PARKS 9
001. Maintenance Pool - 2026-2028 10
Investment Income 10,000,000 10,000,000 11
002. JJ Audubon New Conference Center Reauthorization ($7,500,000 Bond 12
Funds) and Reauthorization and Reallocation ($2,800,000 Bond Funds) 13
(1) Reauthorization and Reallocation: The above Bond Funds in the amount of 14
$2,800,000 are authorized from a reauthorization and reallocation of the project set forth 15
in 2022 Ky. Acts ch. 199, Part II, J., 2., 002. 16
4. HORSE PARK COMMISSION 17
001. Maintenance Pool - 2026-2028 18
Investment Income 1,500,000 1,500,000 19
5. STATE FAIR BOARD 20
001. Maintenance Pool - 2026-2028 21
Investment Income 3,000,000 3,000,000 22
6. FISH AND WILDLIFE RESOURCES 23
001. Fees-in-Lieu-of Stream Mitigation Projects Pool - 2026-2028 24
Restricted Funds 64,500,000 48,600,000 25
002. Maintenance Pool - 2026-2028 26
Restricted Funds 1,500,000 1,500,000 27
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Federal Funds 1,500,000 1,500,000 1
TOTAL 3,000,000 3,000,000 2
003. Construct Western Kentucky Fish Hatchery 3
Restricted Funds 33,528,000 -0- 4
004. Construct Indoor Gun Range and Law Enforcement Training Facility 5
Restricted Funds 2,000,000 -0- 6
Federal Funds 18,000,000 -0- 7
TOTAL 20,000,000 -0- 8
(1) Project Use: The facility shall be multi -use for all law enforcement agencies 9
to the extent allowable by federal law. 10
7. HISTORICAL SOCIETY 11
001. Kentucky Old State Capitol Preservation Additional Reauthorization 12
($2,185,000 Bond Funds, $169,000 Other Funds) 13
Investment Income 5,023,000 -0- 14
8. KENTUCKY CENTER FOR THE ARTS 15
001. Maintenance Pool - 2026-2028 16
Investment Income 550,000 550,000 17
PART III 18
GENERAL PROVISIONS 19
1. Funds Designations: Restricted Funds designated in the biennial budget bills 20
are classified in the state financial records and reports as the Agency Revenue Fund, State 21
Enterprise Funds (State Parks, State Fair Board, Insurance Administration, and Kentucky 22
Horse Park), Internal Services Funds (Fleet Management, Computer Services, 23
Correctional Industries, Central Printing, Risk Management, and Property Management), 24
and selected Fiduciary Funds (Other Expendable Trust Funds). Separate fund records and 25
reports shall be maintained in a manner consistent with the branch budget bills. 26
The sources of Restricted Funds appropriations in this Act shall include all fees 27
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(which includes fees for room and board, athletics, and student activities) and rentals, 1
admittances, sales, bond proceeds, licenses collected by law, gifts, subventions, 2
contributions, income from investments, and other miscellaneous receipts produced or 3
received by a budget unit, except as otherwise specifically provided, for the purposes, 4
use, and benefit of the bu dget unit as authorized by law. Restricted Funds receipts shall 5
be credited and allotted to the respective fund or account out of which a specified 6
appropriation is made in this Act. All receipts of Restricted Funds shall be deposited in 7
the State Treasury and credited to the proper account as provided in KRS Chapters 12, 8
42, 45, and 48. 9
The sources of Federal Funds appropriations in this Act shall include federal 10
subventions, grants, contracts, or other Federal Funds received, income from investments, 11
other miscellaneous federal receipts received by a budget unit, and the Unemployment 12
Compensation Fund, except as otherwise provided, for the purposes, use, and benefit of 13
the budget unit as authorized by law. Federal Funds receipts shall be credited and allot ted 14
to the respective fund account out of which a specified appropriation is made in this Act. 15
All Federal Funds receipts shall be deposited in the State Treasury and credited to the 16
proper account as provided in KRS Chapters 12, 42, 45, and 48. 17
2. Expenditure of Excess Restricted Funds or Federal Funds Receipts: If 18
receipts received or credited to the Restricted Funds accounts or Federal Funds accounts 19
of a budget unit during fiscal year 2026 -2027 or fiscal year 2027 -2028, and any balance 20
forwarded to the credit of these same accounts from the previous fiscal year, exceed the 21
appropriation made by a specific sum for these accounts of the budget unit as provided in 22
Part I, Operating Budget, of this Act, for the fiscal year in which the excess occurs, the 23
excess funds in the accounts of the budget unit shall become available for expenditure for 24
the purpose of the account during the fiscal year only upon compliance with the 25
conditions and procedures specified in KRS 48.400, 48.500, 48.600, 48.605, 48.610, 26
48.620, 48.630, 48.730, and 48.800, and with the authorization of the State Budget 27
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Director and approval of the Secretary of the Finance and Administration Cabinet. 1
Prior to authorizing the appropriation of any excess, unbudgeted Restricted Funds 2
pursuant to th is section, the State Budget Director and the Secretary of the Finance and 3
Administration Cabinet shall review the adequacy of the General Fund Surplus Account 4
with respect to its availability to support authorized expenditures from the General Fund 5
Surplus Account, known as Necessary Government Expenses. If General Fund Surplus 6
Account moneys are determined by this review to be adequate to meet known or 7
anticipated Necessary Government Expenses during fiscal year 2026 -2027 or fiscal year 8
2027-2028, respectively, then the appropriation increase may be approved. If the review 9
indicates that there are insufficient funds available or reasonably estimated to become 10
available to the General Fund Surplus Account to meet known or projected Necessary 11
Government Expenses for the fiscal years enumerated above, the State Budget Director 12
and the Secretary of the Finance and Administration Cabinet may disapprove the request 13
for additional Restricted Funds expenditure authority and may direct the excess 14
Restricted Funds id entified to the General Fund Surplus Account in order to meet 15
Necessary Government Expense obligations. The results of any review shall be reported 16
to the Interim Joint Committee on Appropriations and Revenue in accordance with KRS 17
48.400, 48.500, 48.600, 48.605, 48.610, 48.620, 48.630, 48.730, and 48.800. 18
Any request made by a budget unit pursuant to KRS 48.630 that relates to 19
Restricted Funds or Federal Funds shall include documentation showing a comparative 20
statement of revised estimated receipts by fund source and the proposed expenditures by 21
proposed use, with the appropriated sums specified in the Budget of the Commonwealth, 22
and statements which explain the cause, source, and use for any variances which may 23
exist. 24
Notwithstanding KRS 48.630(2), any req uest for allotment of unbudgeted 25
appropriations from any fund source shall be made in writing 30 days in advance of any 26
allotment revision by the head of the budget unit and transmitted simultaneously to the 27
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State Budget Director and the Interim Joint Comm ittee on Appropriations and Revenue. 1
The State Budget Director shall report all approved revisions of unbudgeted 2
appropriations to the Interim Joint Committee on Appropriations and Revenue within 14 3
days of the revision. This report shall include analysis, including but not limited to the 4
amount, necessity, remaining unbudgeted funds, and anticipated future needs for 5
unbudgeted funds. 6
Each budget unit shall submit its reports in print and electronic format consistent 7
with the Restricted Funds and Federal Fu nds records contained in the fiscal biennium 8
2026-2028 Branch Budget Request Manual and according to the following schedule in 9
each fiscal year: (a) on or before the beginning of each fiscal year; (b) on or before 10
October 1; (c) on or before January 1; and (d) on or before April 1. 11
3. Interim Appropriation Increases: No appropriation from any fund source 12
shall exceed the sum specified in this Act until the agency has documented the necessity, 13
purpose, use, and source, and the documentation has been submitte d to the Interim Joint 14
Committee on Appropriations and Revenue at least 30 days in advance for its review and 15
action in accordance with KRS 48.630 and Section 2. of this Part. Proposed revisions to 16
an appropriation contained in the enacted State/Executive Branch Budget or allotment of 17
an unbudgeted appropriation shall conform to the conditions and procedures of KRS 18
48.630 and this Act. 19
4. Revision of Appropriation Allotments: Allotments within appropriated 20
sums for the activities and purposes contained in t he enacted State/Executive Branch 21
Budget shall conform to KRS 48.610 and may be revised pursuant to KRS 48.605 and 22
this Act. 23
5. Permitted Appropriation Obligations: No state agency, cabinet, 24
department, office, or program shall incur any obligation against the General Fund or 25
Road Fund appropriations contained in this Act unless the obligation may be reasonably 26
determined to have been contemplated in the enacted State/Executive Branch Budget and 27
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is based upon supporting documentation considered by the Gener al Assembly and 1
legislative and executive records. 2
6. Lapse of General Fund or Road Fund Appropriations Supplanted by 3
Federal Funds: Notwithstanding KRS 45.229, any General Fund appropriation made in 4
anticipation of a lack, loss, or reduction of Federal Fu nds shall lapse to the Budget 5
Reserve Trust Fund Account (KRS 48.705) to the extent the Federal Funds otherwise 6
become available. Any Road Fund appropriation made in anticipation of a lack, loss, or 7
reduction of Federal Funds shall lapse to the Road Fund S urplus Account to the extent 8
the Federal Funds otherwise become available. 9
7. Federally Funded Agencies: A state agency entitled to Federal Funds, which 10
would represent 100 percent of the cost of a program, shall conform to KRS 48.730. 11
8. Lapse of General Fund or Road Fund Excess Debt Service 12
Appropriations: Notwithstanding KRS 48.720, any excess General Fund debt service 13
shall lapse to the Budget Reserve Trust Fund Account (KRS 48.705) unless otherwise 14
directed in this Act. Pursuant to KRS 48.720, any exce ss Road Fund debt service shall 15
lapse to the Road Fund Surplus Account unless otherwise directed in this Act. 16
9. Statutes in Conflict: All statutes and portions of statutes in conflict with any 17
of the provisions of this Act, to the extent of the conflict, are suspended unless otherwise 18
provided by this Act, and any question arising shall be decided by the Attorney General. 19
10. Interpretation of Appropriations: Notwithstanding KRS 48.500, all 20
questions that arise in interpreting this Act and the Transportati on Cabinet Budget shall 21
be decided by the Attorney General, and the decision of the Attorney General shall be 22
final and conclusive. 23
11. Publication of the Budget of the Commonwealth: The State Budget 24
Director shall cause the Governor's Office for Policy an d Management, within 60 days of 25
adjournment of the 2026 Regular Session of the General Assembly, to publish a final 26
enacted budget document, styled the Budget of the Commonwealth, based upon the 27
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Legislative Branch Budget, State/Executive Branch Budget, Tra nsportation Cabinet 1
Budget, and Judicial Branch Budget as enacted by the 2026 Regular Session, as well as 2
other Acts which contain appropriation provisions for the 2026-2028 fiscal biennium, and 3
based upon supporting documentation and legislative records a s considered by the 2026 4
Regular Session. This document shall include, for each agency and budget unit, a 5
consolidated budget summary statement of available regular and continuing appropriated 6
revenue by fund source, corresponding appropriation allocations by program or 7
subprogram as appropriate, budget expenditures by principal budget class, and any other 8
fiscal data and commentary considered necessary for budget execution by the Governor's 9
Office for Policy and Management and oversight by the Interim Join t Committee on 10
Appropriations and Revenue. The enacted State/Executive Branch Budget and 11
Transportation Cabinet Budget shall be revised or adjusted only upon approval by the 12
Governor's Office for Policy and Management as provided in each Part of this Act a nd by 13
KRS 48.400 to 48.810, and upon review and approval by the Interim Joint Committee on 14
Appropriations and Revenue. 15
12. State Financial Condition: Pursuant to KRS 48.400, the State Budget 16
Director shall monitor and report on the financial condition of the Commonwealth. 17
13. Prorating Administrative Costs: The Secretary of the Finance and 18
Administration Cabinet is authorized to establish a system or formula or a combination of 19
both for prorating the administrative costs of the Finance and Administration Ca binet, the 20
Department of the Treasury, and the Office of the Attorney General relative to the 21
administration of programs in which there is joint participation by the state and federal 22
governments for the purpose of receiving the maximum amount of participa tion 23
permitted under the appropriate federal laws and regulations governing the programs. The 24
receipts and allotments under this section shall be reported to the Interim Joint 25
Committee on Appropriations and Revenue prior to any transfer of funds. 26
14. Construction of Budget Provisions Regarding Executive Reorganization 27
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Orders: Nothing in this Act shall be construed to confirm or ratify, under KRS 12.028, 1
any executive reorganization order unless the executive order was confirmed or ratified 2
by appropriate amendment to the Kentucky Revised Statutes in another Act of the 2026 3
Regular Session of the General Assembly. 4
15. Executive Orders: (1) For the purpose of ensuring transparent 5
government, the Governor shall provide a comprehensive report to the Legisla tive 6
Research Commission simultaneously with each and every executive order issued 7
pertaining to: 8
(a) Authorizing the expenditure of state funds over $10,000; 9
(b) Establishing or altering the organization of state agencies; 10
(c) Establishing or altering the services provided by state government; or 11
(d) Establishing a new program or altering an existing program administered by 12
state government. 13
(2) The comprehensive report shall contain the following items: 14
(a) A complete statement of each essential fact upon which the order is based; 15
(b) A complete statement of each goal sought through issuance of the order; 16
(c) A comprehensive analysis explaining how the executive order achieves each 17
stated goal with the least burden placed upon the constitutional right s of the citizens of 18
the Commonwealth of Kentucky and how each stated goal is accomplished with the most 19
efficient use of taxpayer money; 20
(d) A detailed estimate of the anticipated expenditures of all state funds and all 21
state employee time required for i mplementation or enforcement itemized in the smallest 22
categories reasonably identifiable and stated in weekly increments; and 23
(e) A detailed statement of all state funds and all state employee time actually 24
expended for implementation or enforcement of eac h and every prior executive order 25
upon the same issue or event or substantially similar issue or event itemized in the 26
smallest categories reasonably identifiable and stated in weekly increments. 27
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Each comprehensive report shall be updated every 30 days sub sequent to issuance 1
of an executive order and shall be provided to the Legislative Research Commission. 2
(3) Notwithstanding any statute to the contrary, except as provided in this Act, no 3
state funds or state employee time shall be expended by any person o r agency to 4
implement or enforce any executive order issued other than as authorized by KRS 5
Chapters 39A to 39F, as amended by 2021 Regular Session SB 1 and further amended by 6
subsequent acts of the 2021 General Assembly, or other than as may be implemente d or 7
enforced for a total sum not exceeding $100,000, inclusive of all state employee time and 8
costs, or other than as may relate to an emergency order issued relative to a natural 9
disaster, or other than as may be approved by the General Assembly. 10
16. Tax Expenditure Revenue Loss Estimates: By September 1 of each fiscal 11
year, the Office of State Budget Director shall provide to each branch of government 12
detailed estimates for the General Fund and Road Fund for the current and next two fiscal 13
years of th e revenue loss resulting from tax expenditures. The Department of Revenue 14
shall provide assistance and furnish data, which is not restricted by KRS 131.190. "Tax 15
expenditure" as used in this section means an exemption, exclusion, or deduction from 16
the base of a tax, a credit against the tax, a deferral of a tax, or a preferential tax rate. The 17
estimates shall include for each tax expenditure the amount of revenue loss, a citation of 18
the legal authority for the tax expenditure, the year in which it was enact ed, and the tax 19
year in which it became effective. 20
17. Duplicate Appropriations: Any appropriation item and sum in Parts I to X 21
of this Act and in an appropriation provision in any Act of the 2026 Regular Session 22
which constitutes a duplicate appropriation shall be governed by KRS 48.312. 23
18. Priority of Individual Appropriations: KRS 48.313 shall control when a 24
total or subtotal figure in this Act conflicts with the sum of the appropriations of which it 25
consists. 26
19. Severability of Budget Provisions: Appropriation items and sums in Parts I 27
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to X of this Act shall conform to KRS 48.311. If any section, any subsection, or any 1
provision is found by a court of competent jurisdiction in a final, unappealable order to be 2
invalid or unconstitutional, the decision of the courts shall not affect or impair any of the 3
remaining sections, subsections, or provisions. 4
20. Unclaimed Lottery Prize Money: For fiscal year 2026 -2027 and fiscal year 5
2027-2028, all unclaimed lottery prize money under KRS 154A.110(3) shall be cre dited 6
to the Kentucky Educational Excellence Scholarship Reserve Account to be held as a 7
subsidiary account within the Finance and Administration Cabinet for the purpose of 8
funding the KEES Program as appropriated in this Act. If the Kentucky Higher Education 9
Assistance Authority certifies to the State Budget Director that the appropriations in this 10
Act for the KEES Program under the existing award schedule are insufficient to meet 11
funds required for eligible applicants, then the State Budget Director shall provide the 12
necessary allotment of funds in the balance of the KEES Reserve Account to fund the 13
KEES Program. Actions taken under this section shall be reported to the Interim Joint 14
Committee on Appropriations and Revenue on a timely basis. 15
21. Workers' C ompensation: Notwithstanding KRS 342.340(1) and 803 KAR 16
25:021, Section 4, the Personnel Cabinet shall be exempt from procuring excess risk 17
insurance in fiscal year 2026 -2027 and fiscal year 2027 -2028 for the Workers' 18
Compensation Benefits and Reserve Program administered by the Cabinet. 19
22. Carry Forward and Undesignated General Fund and Road Fund Carry 20
Forward: Notwithstanding KRS 48.700 and 48.705, and other Parts of this Act, the 21
Secretary of the Finance and Administration Cabinet shall determine and ce rtify, within 22
30 days of the close of fiscal year 2025 -2026 and fiscal year 2026 -2027, the actual 23
amount of undesignated balance of the General Fund and the Road Fund for the year just 24
ended. The amounts from the undesignated fiscal year 2025 -2026 and fisc al year 2026 -25
2027 General Fund and Road Fund balances that are designated and carried forward for 26
budgeted purposes in the 2026 -2028 fiscal biennium shall be determined by the State 27
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Budget Director during the close of the respective fiscal year and shall b e reported to the 1
Interim Joint Committee on Appropriations and Revenue within 30 days of the close of 2
the fiscal year. Any General Fund undesignated balance in excess of the amount 3
designated for budgeted purposes under this section shall be made availabl e for the 4
General Fund Surplus Expenditure Plan contained in Part VII of this Act unless otherwise 5
provided in this Act. The Road Fund undesignated balance in excess of the amount 6
designated for budgeted purposes under this section shall be made available for the Road 7
Fund Surplus Expenditure Plan contained in Part IX of this Act unless otherwise 8
provided in this Act. 9
23. Budget Implementation: The General Assembly directs the Executive 10
Branch to carry out all appropriations and budgetary language provision s as contained in 11
the State/Executive Branch Budget. The Legislative Research Commission shall review 12
quarterly expenditure data to determine if an agency is out of compliance with this 13
directive. If the Legislative Research Commission suspects that any en tity has acted in 14
non-conformity with this section, the Legislative Research Commission may order an 15
audit or review at the agency's expense. Such audit findings, reviews, and reports shall be 16
subject to the Kentucky Open Records Act. The Secretary of each Cabinet, the 17
Commissioner of Education, or agency head shall provide, in the form and manner 18
prescribed by the Legislative Research Commission, a comprehensive annual report, 19
beginning September 1, 2026, to the Interim Joint Committee on Appropriations an d 20
Revenue detailing expenditures related to the appropriations contained within the 21
budgetary language provisions for each budget unit within their cabinet. If an agency 22
does not expend the full General Fund or Road Fund appropriations contained within a 23
budgetary language provision, the unexpended funds shall be transferred to the Budget 24
Reserve Trust Fund Account (KRS 48.705) or the Road Fund Surplus Account (KRS 25
48.710), respectively. 26
24. Appropriations Expenditure Purpose and Transfer Restrictions: Funds 27
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appropriated in this Act shall be expended only for the purposes specified and authorized 1
by the General Assembly in this Act. No funds appropriated in this Act shall be 2
transferred to or between any cabinet, department, board, commission, institution, 3
agency, or budget unit of state government unless specifically authorized by the General 4
Assembly in this Act and KRS 48.400 to 48.810. Semiannually, beginning February 1, 5
2027, the State Budget Director shall submit a letter to the Legislative Research 6
Commission certifying any known violations of any provision of this section for that six -7
month period or any prior six -month period. Compliance with the provisions of this 8
section shall be reviewed and determined by the Interim Joint Committee on 9
Appropriations and Revenue. 10
25. Information Technology: All authorized computer information technology 11
projects shall submit a semiannual progress report to the Capital Projects and Bond 12
Oversight Committee and the Information Technology Oversight Committee. The 13
reporting process shall begin six months after the project is authorized and shall continue 14
through completion of the project. The initial report shall establish a timeline for 15
completion and cash disbursement schedule. Each subsequent report shall update the 16
timeline and budgetary status of the project and explain in detail any issues with 17
completion date and funding. 18
26. Equipment Service Contracts and Energy Efficiency Measures: The 19
General Assembly mandates that the Finance and Administration Cabinet review all 20
equipment service contracts to maximize savings to the Commonwealth to strictly adhere 21
to the provisions of KRS 56.772, 56.782, and 56.784 in maximizing the use of energy 22
efficiency measures. 23
27. Debt Restructuring: Notwithstanding any other provision of the Kentucky 24
Revised Statutes, no General Fund or Road Fund debt restructuring transactions shall be 25
undertaken during the 2026-2028 fiscal biennium. 26
28. Effects of Subsequent Legislation: If any measure enacted during the 2026 27
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Regular Session of the Ge neral Assembly subsequent to this Act contains an 1
appropriation or is projected to increase or decrease General Fund revenues, the amount 2
in the Budget Reserve Trust Fund shall be revised to accommodate the appropriation or 3
the reduction or increase in pro jected revenues. Notwithstanding any provision of KRS 4
48.120(3) and (4) to the contrary, the official enacted revenue estimates of the 5
Commonwealth described in KRS 48.120(4) shall be adjusted at the conclusion of the 6
2026 Regular Session of the General As sembly, respectively, to incorporate any 7
projected revenue increases or decreases that will occur as a result of actions taken by the 8
General Assembly subsequent to the passage of this Act by both chambers. 9
29. Permitted Use of Water and Sewer Bond Funds: Notwithstanding Part II, 10
(3) of this Act and any statute to the contrary, any balances remaining for either closed or 11
open project grant agreements authorized pursuant to bond pools set forth in 2003 Ky. 12
Acts ch. 156, Part II, A., 3., d. Water and Sewer Re sources Development Fund for 13
Tobacco Counties and e. Water and Sewer Resources Development Fund For Coal 14
Producing Counties; 2005 Ky. Acts ch. 173, Part II, A., 3., 003. Infrastructure for 15
Economic Development Fund for Coal -Producing Counties and 004. Infr astructure for 16
Economic Development Fund for Tobacco Counties; 2006 Ky. Acts ch. 252, Part II, A., 17
2., 003. Infrastructure for Economic Development Fund for Non -Coal Producing 18
Counties and 004. Infrastructure for Economic Development Fund for Coal -Producing 19
Counties; 2008 Ky. Acts ch. 123, Section 3., 004. Infrastructure for Economic 20
Development Fund for Coal -Producing Counties and 005. Infrastructure for Economic 21
Development Fund for Non-Coal Producing Counties; 2008 Ky. Acts ch. 174, Section 2.; 22
and 2009 Ky. Acts ch. 87, Section 2. shall not lapse and shall remain to the credit of 23
projects previously authorized by the General Assembly unless expressly reauthorized 24
and reallocated by action of the General Assembly. 25
30. Approval of State Aircraft Travel: Notwithstanding KRS 45.101, 174.508, 26
and any other statute or administrative regulation to the contrary, the use of state aircraft 27
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by any secretary or other state official of any Executive Branch cabinet for out -of-state 1
travel shall be approved by the State Treasurer. The State Treasurer shall only approve 2
requests which document that the use of state aircraft is the lowest cost option as 3
measured by both travel costs and travel time. The State Treasurer shall not designate 4
approval authority for out -of-state travel on state aircraft by Executive Branch cabinet 5
secretaries or other state officials to any other person. Any requests and documentation 6
regarding the use of state aircraft collected by the State Treasurer shall be subject to the 7
Kentucky Open Records Act, KRS 61.870 to 61.884. 8
31. Electronic Access to Budget Information: In accordance with KRS 48.950, 9
the State Budget Director shall continue to work cooperatively with the Legislative 10
Research Commission to provide relevant budgetary information in a timely manner. To 11
ensure that this information is transmitted in its most useful format, the State Budget 12
Director shall provide electronic versions of all documents requested by the Legislative 13
Research Commission in an editable format in order for documents to be manipulated 14
without the use of specialized software. Electronic access shall also include the ability to 15
access and view, but not edit, documents contained in KBUD and all related or successor 16
budgetary systems of record. 17
32. Motor Vehicles: Notwithstanding any statute to the contrary, no agency, 18
department, air pollut ion control district, or political subdivision of the Commonwealth, 19
including the Transportation Cabinet, shall mandate the purchase of electric vehicles, and 20
no Request for Proposal shall limit purchasing of vehicles to solely electric vehicles. 21
33. Fiscal Year 2027 -2028 Funds Expenditure Restriction: Except in the case 22
of a declared emergency, the Governor, all agency heads, and all other constitutional 23
officers shall not expend or encumber in the aggregate more than 50 percent of the funds 24
appropriated by this Act during the first half of fiscal year 2027-2028. 25
34. Operating Expense Reduction: (1) The State Auditor has identified that 26
in fiscal year 2024 -2025 the Executive Branch spent $365,118,727 on the following 27
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expense codes: 1
(a) Employee Training - State Employee Only (E133) $6,718,307; 2
(b) Advertising Services (E147) $9,362,940; 3
(c) Temporary Manpower Services (E191) $69,770,650; 4
(d) Advertising (E255) $29,692,913; 5
(e) Services Not Otherwise Classified (E257) $51,802,056; 6
(f) Expenses Related to Trade Shows (E259) $4,605,317; 7
(g) Food Products (E341) $5,369,478; 8
(h) Subscriptions (E353) $3,273,091; 9
(i) In-State Travel (E361) $23,278,869; 10
(j) Out of State Travel (E362) $7,438,490; 11
(k) Travel for Non-State Employees (E363) $3,983,338; 12
(l) Dues (E381) $10,336,469; and 13
(m) Other (E399) $118,383.22. 14
(2) The State Budget Director, the Secretary of the Executive Cabinet, and the 15
Secretary of the Finance and Administration Cabinet shall take the necessary steps to 16
reduce the expenses for the Executive Branch, in codes E361 and E362, in the fourth 17
fiscal quarter of fiscal year 2025 -2026. The State Budget Director shall also submit a 18
written report to the Interim Joint Committee on Appropriations and Revenue by August 19
1, 2026, concerning the Executive Branch expe nditures assigned to these codes for fiscal 20
year 2025-2026. 21
(3) In order to implement the 2026 General Assembly's policy and fiscal 22
directives of the contained in Part I, Operating Budget, of this Act, it will be necessary 23
for the Executive Branch to reduce the operating cost of each agency. To accomplish this 24
policy directive, unless otherwise directed by State or Federal Law or required by Court 25
Order, the State Budget Director, the Secretary of the Finance and Administration 26
Cabinet, and the Secretary of the Personnel Cabinet shall take the necessary steps to 27
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reduce, modify, or eliminate the expenditures of state agencies in the following priority 1
order: 2
(a) Temporary Manpower Services personnel and contracts; 3
(b) Advertising Services and other advertisin g costs, by requiring that the prior 4
written approval of the Secretary of the Finance and Administration Cabinet be secured 5
before any expense is incurred in these code areas; 6
(c) Out-of-state travel should require and receive prior written approval of the 7
Secretary of the Finance and Administration Cabinet; 8
(d) Practice of providing food and meals that cost more than is set out in the in -9
state travel guideline allowance for employees attending meetings, unless the prior 10
written approval of the State Budget Director has been secured; 11
(e) Prior written approval of the agency head for any conference, meeting, or 12
event that will require in-state travel of 20 employees or more; 13
(f) Prior written approval of the agency head for any expense that will be charged 14
to the eMARS code E257 (Services Not Otherwise Classified), code E399 (Other), or 15
code E259 (Expenses Related to Trade Shows); 16
(g) Abolishment of positions that have remained vacant for six months; 17
(h) Moratorium on all discretionary salary increases; and 18
(i) Reduction, modification, or elimination of programs or services not required 19
by state or federal law or regulation. 20
(4) Quarterly, beginning June 15, 2026, the Secretary of the Finance and 21
Administration Cabinet and the State Budget Director shall provide a written report to the 22
Interim Joint Committee on Appropriations and Revenue on the actions taken to 23
implement the policy and fiscal directives provided in this Part. That report shall contain 24
at least the following: 25
(a) A listing of all prior approvals granted that are required by subsection (3)(b), 26
(c), (d), (e), and (f) of this section; 27
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(b) A comparison of the charges processed to the codes listed in subsection (1) of 1
this section between the past month of the current f iscal year and the same month of the 2
previous fiscal year; and 3
(c) The identification of any other policy decisions, directives, or actions taken by 4
the Executive Branch in the past month to reduce the operating cost of programs, 5
services, or activities of the Executive Branch. 6
35. Operational Expenditures Data: The head of each budget unit shall, by 7
October 1, 2026, submit a report to the Legislative Oversight and Investigations 8
Committee and the Interim Joint Committee on Appropriations and Revenue with t he 9
following information and data pertaining to the historical and projected operational 10
expenditures for each budget unit: 11
(1) Identifying information of the budget unit; and 12
(2) A description of each program, function, service, or benefit provided by the 13
budget unit, including but not limited to the following: 14
(a) Measurable outcome data for the program, function, service, or benefit 15
provided in fiscal year 2025 -2026 and projected for fiscal years 2026 –2027 and 2027 –16
2028 for programs, functions, services, or benefits that are statutorily mandated; 17
(b) Measurable outcome data for the program, function, service, or benefit 18
provided in fiscal year 2025 -2026 and projected for fiscal years 2026 –2027 and 2027 –19
2028 for programs, functions, services, or benefits that are not statutorily mandated; 20
(c) Identification of any contracts or grants with other state budget units or 21
external providers engaged to provide or assist in providing the program, function, 22
service, or benefit in fiscal years 2025-2026, 2026-2027, or 2027-2028; 23
(d) The number of full -time, part-time, and other filled positions assigned to the 24
program, function, service, or benefit on July 1 of each fiscal year; 25
(e) The number and projected cost of all temporary manpower service personnel 26
assigned to the program, function, service, or benefit as of July 1 each fiscal year; 27
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(f) The actual expenditures, by fund source, for each program, function, service, 1
or benefit for fiscal year 2025-2026; 2
(g) The projected expenditures, by fund source, by fiscal year , for each program, 3
function, service, or benefit for fiscal years 2026-2027 and 2027-2028; and 4
(h) The actual balance of any Restricted Funds or Agency Trust Funds assigned 5
to the program, function, service, or benefit as of July 1, 2026, and projected to be on 6
July 1, 2027, and July 1, 2028. 7
The information shall be submitted only in a format prescribed by the Legislative 8
Oversight and Investigations Committee. 9
The head of each budget unit shall, within 30 days, provide any follow -up or 10
additional information on the programs, functions, services, or benefits provided by the 11
budget unit requested by the Legislative Research Commission or a subcommittee 12
thereof. 13
36. Control of Deadly Weapons: Notwithstanding KRS 237.115, during the 14
period of the 2026 -2028 fiscal biennium and the ongoing renovation of the State Capitol 15
and associated facilities in Frankfort, the General Assembly shall have the authority to 16
regulate, restrict, or prohibit the carrying of deadly weapons, whether concealed or 17
unconcealed, within the buildings or portions of buildings controlled, occupied, or 18
inhabited by the Legislative Branch. 19
37. Quarter Horse Racing Acquisition and Infrastructure: The Kentucky 20
Horse Racing and Gaming Corporation, with the approval of the Kentucky Quarter Horse 21
Racing Association, may utilize funds as established by KRS 230.405 and regulated by 22
810 KAR 7:080 to purchase the rights to a Grade I Quarter Horse race. Any race acquired 23
under this section shall be conducted at a licensed track or association within th e 24
Commonwealth of Kentucky, and all rights shall vest in the Kentucky Quarter Horse 25
Racing Association. 26
A track or association located within the Commonwealth of Kentucky that offers a 27
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Grade I Quarter Horse race shall be authorized, upon approval by the Ke ntucky Quarter 1
Horse Racing Association, to seek and receive funds from the Kentucky Horse Racing 2
and Gaming Corporation. These funds shall be utilized for infrastructure reasonably 3
necessary to ensure the safety and integrity of the race meets. 4
Total expenditures authorized under this section shall not exceed 20 percent of the 5
total current receipts of the fund established by KRS 230.405. All such funds shall be 6
appropriated by the Corporation no later than March 1, 2027. 7
PART IV 8
STATE SALARY/COMPENSATION, BENEFIT, AND EMPLOYMENT POLICY 9
1. Authorized Personnel Complement: On July 1, 2026, and July 1, 2027, the 10
Personnel Cabinet and the Office of State Budget Director shall establish a record for 11
each budget unit of authorized permanent full -time and other p ositions based upon the 12
enacted State/Executive Branch Budget of the Commonwealth and any adjustments 13
authorized by provisions in this Act. The total number of filled permanent full -time and 14
all other positions shall not exceed the authorized complements p ursuant to this section. 15
An agency head may request an increase in the number of authorized positions to the 16
State Budget Director. Upon approval of the State Budget Director, the Secretary of the 17
Personnel Cabinet may authorize the employment of individua ls in addition to the 18
authorized complement. A report of the actions authorized in this section shall be 19
provided to the Legislative Research Commission on a monthly basis. 20
2. Salary Increment: Notwithstanding KRS 18A.355, relating to anniversary 21
date, and notwithstanding KRS 156.808(6)(e) and 163.032(1), a two percent salary 22
increase is provided, effective July 1, 2026, and a two percent salary increase is provided, 23
effective July 1, 2027, on the base salary or wages of each eligible state employee. 24
3. Employee Cross -Reference: The Personnel Cabinet may permit married 25
couples who are both eligible to participate in the state health insurance plan to be 26
covered under one family health benefit plan. 27
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4. Full-Time Positions: Notwithstanding KRS 18A.005(18)(a), full-time 1
positions in the state parks, where the work assigned is dependent upon fluctuations in 2
tourism, may be assigned work hours from 25 hours per week and remain in full -time 3
positions. 4
5. Employer Retirement Contribution Rates: Notwithstanding KRS 6 1.565 5
and 61.702, the employer contribution rates for Kentucky Employees Retirement System 6
from July 1, 2026, through June 30, 2028, and except as otherwise provided in this Act, 7
shall be 18.83 percent, consisting of 18.83 percent for pension for hazardous duty 8
employees; for the same period, the employer contribution for employees of the State 9
Police Retirement System shall be 54.33 percent, consisting of 51.84 percent for pension 10
and 2.49 percent for health insurance. Notwithstanding any other provision o f this Act or 11
KRS 61.565 or 61.702 to the contrary, the initial actuarially accrued liability employer 12
contribution rate for fiscal year 2026 -2027 and for fiscal year 2027 -2028, for 13
nonhazardous employees in the Executive Branch departments shall be determined by the 14
State Budget Director by May 1 prior to the beginning of each fiscal year. The employer 15
contribution rate shall include the normal cost contribution of 7.76 percent and be 16
sufficient to adhere to the prorated amount of the actuarially accrued l iability to each 17
individual nonhazardous employer as determined by the Kentucky Employees Retirement 18
System. The rates in this section apply to wages and salaries earned for work performed 19
during the described period regardless of when the employee is paid for the time worked. 20
6. Health Care Spending Account: Notwithstanding KRS 18A.2254(2)(a) and 21
(b), if a public employee waives coverage provided by his or her employer under the 22
Public Employee Health Insurance Program, the employer shall forward a monthly 23
amount to be determined by the Secretary of the Personnel Cabinet for that employee as 24
an employer contribution to a health reimbursement account or a health flexible spending 25
account, but not less than $175 per month, subject to any conditions or limitat ions 26
imposed by the Secretary of the Personnel Cabinet to comply with applicable federal law. 27
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The administrative fees associated with a health reimbursement account or health flexible 1
spending account shall be an authorized expense to be charged to the Pub lic Employee 2
Health Insurance Trust Fund. 3
7. State Group Health Insurance Plan - Transfer Between Plan Years: 4
Notwithstanding KRS 18A.2254, the Secretary of t he Finance and Administration 5
Cabinet and the Secretary of the Personnel Cabinet are authorized to use the excess funds 6
from any prior plan year to satisfy claims or expenses in Plan Year 2022, Plan Year 2023, 7
Plan Year 2024, and Plan Year 2025. 8
8. State Group Health Insurance Plan - Plan Year Closure: Notwithstanding 9
KRS 18A.2254, Plan Year 2021 shall be considered closed as of June 30, 2026, and the 10
balance from that Plan Year shall be transferred to Plan Year 2022. All other income and 11
expenses attributable to the closed Plan Year shall be deposited in or charged to the Plan 12
Year 2022 account after that date. 13
9. Mandated Health Coverage: Employer and employee contributions made to 14
the Kentucky Employees Health Plan Trust Fund for Plan Years 2027 and 2028 are 15
sufficient to implement and carry out the provisions of 2024 Ky. Acts ch. 75 and 97. 16
PART V 17
FUNDS TRANSFER 18
The General Assembly finds that the financial condition of state government 19
requires the following action. 20
Notwithstanding the statutes or requir ements of the Restricted Funds enumerated 21
below, there is transferred to the General Fund the following amounts in fiscal year 2026-22
2027 and fiscal year 2027-2028: 23
2026-27 2027-28 24
A. ENERGY AND ENVIRONMENT CABINET 25
1. Environmental Protection 26
Insurance Administration Fund 24,000,000 26,000,000 27
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(KRS 224.60-130, 224.60-140, 224.60-145, and 224.60-150) 1
B. HEALTH AND FAMILY SERVICES CABINET 2
1. General Administration and Program Support 3
Medical Cannabis Agency Fund -0- 10,400,000 4
C. JUSTICE AND PUBLIC SAFETY CABINET 5
1. Criminal Justice Training 6
Criminal Justice Training 2,368,000 2,368,000 7
(KRS 15.430 and 136.392(2)) 8
Notwithstanding KRS 15.430 and 136.392(2), these funds transfers to the General 9
Fund support the General Fund debt service for the capi tal project in 2022 Ky. Acts ch. 10
199, Part II, H., 2., 002. 11
TOTAL - FUNDS TRANSFER 26,368,000 38,768,000 12
PART VI 13
GENERAL FUND BUDGET REDUCTION PLAN 14
Pursuant to KRS 48.130 and 48.600, a General Fund Budget Reduction Plan is 15
enacted for state government in the event of an actual or projected revenue shortfall in 16
General Fund revenue receipts, excluding Tobacco Settlement – Phase I receipts, of 17
$15,498,900,000 in fiscal year 2025-2026, $15,882,000,000 in fiscal year 2026-2027, and 18
$16,232,200,000 in fiscal year 2027-2028, as modified pursuant to Part III, 28. of this Act 19
and by related Acts and actions of the General Assembly in any subsequent extraordinary 20
or regular session. Notwithstanding KRS 48.130, direct services, obligations essential to 21
the minimum le vel of constitutional functions, and other items that may be specified in 22
this Act, are exempt from the requirements of this Plan. Each branch head shall prepare a 23
specific plan to address the proportionate share of the General Fund revenue shortfall 24
applicable to the respective branch. No budget revision action shall be taken by a branch 25
head in excess of the actual or projected revenue shortfall. 26
The Governor, the Secretary of State, the Attorney General, the Treasurer, the 27
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Commissioner of Agriculture, th e Auditor of Public Accounts, the Chief Justice, and the 1
Legislative Research Commission shall direct and implement reductions in allotments 2
and appropriations only for their respective branch budget units as may be necessary, as 3
well as take other measures which shall be consistent with the provisions of this Part and 4
biennial branch budget bills. 5
Pursuant to KRS 48.130(4), in the event of a revenue shortfall of five percent or 6
less, the following General Fund budget reduction actions shall be implemented: 7
(1) The Local Government Economic Assistance Fund and the Local Government 8
Economic Development Fund shall be adjusted by the Secretary of the Finance and 9
Administration Cabinet to equal revised estimates of receipts pursuant to KRS 42.4582 as 10
modified by the provisions of this Act; 11
(2) Transfers of excess unappropriated Restricted Funds, notwithstanding any 12
statutes to the contrary, other than fiduciary funds, to the General Fund shall be applied 13
as determined by the head of each branch for its respective budget units. No transfers to 14
the General Fund shall be made from the following: 15
(a) Local Government Economic Assistance Fund and Local Government 16
Economic Development Fund; 17
(b) Unexpended debt service from the Tobacco -Settlement Phase I Funds, 18
including but not limited to unexpended debt service and the Tobacco Unbudgeted 19
Interest Income-Rural Development Trust Fund, in either fiscal year; and 20
(c) The Kentucky Permanent Pension Fund; 21
(3) Lapse unexpended debt service; 22
(4) Any unanticipated Phase I Master Settlement Agreement revenues in both 23
fiscal years shall be appropriated according to Part X of this Act and shall not be 24
transferred to the General Fund; 25
(5) Use of the unappropr iated balance of the General Fund surplus shall be 26
applied; 27
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(6) Any language provision that expresses legislative intent regarding a specific 1
appropriation shall not be reduced by a greater percentage than the reduction to the 2
General Fund appropriation for that budget unit; 3
(7) Lapse contributions appropriated to pensions in excess of statutory 4
requirements; 5
(8) Lapse contributions appropriated to pension insurance in excess of actuarially 6
required contributions; 7
(9) Reduce General Fund appropriations in E xecutive Branch agencies' operating 8
budget units by a sufficient amount to balance either fiscal year. No reductions of 9
General Fund appropriations shall be made from the Local Government Economic 10
Assistance Fund or the Local Government Economic Development Fund; 11
(10) Notwithstanding subsection (9) of this Part, no reductions shall be made to the 12
Secretary of State, the Attorney General, the Treasurer, the Commissioner of Agriculture, 13
or the Auditor of Public Accounts, or their offices, Commonwealth's Attor neys or their 14
offices, or County Attorneys or their offices. The Governor may request their 15
participation in a budget reduction; however, the level of participation shall be at the 16
discretion of the Constitutional Officer or the Prosecutors Advisory Counci l, and shall 17
not exceed the actual percentage of revenue shortfall; 18
(11) Excess General Fund appropriations which accrue as a result of personnel 19
vacancies and turnover, and reduced requirements for operating expenses, grants, and 20
capital outlay shall be determined and applied by the heads of the executive, judicial, and 21
legislative departments of state government for their respective branches. The branch 22
heads shall certify the available amounts which shall be applied to budget units within the 23
respective branches and shall promptly transmit the certification to the Secretary of the 24
Finance and Administration Cabinet and the Legislative Research Commission. The 25
Secretary of the Finance and Administration Cabinet shall execute the certified actions as 26
transmitted by the branch heads. 27
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Branch heads shall take care, by their respective actions, to protect, preserve, and 1
advance the fundamental health, safety, legal and social welfare, and educational well -2
being of the citizens of the Commonwealth; 3
(12) Pursuant to KRS 48.130 and 48.600, if the actions contained in subsections 4
(1) to (11) of this Part are insufficient to eliminate an actual or projected General Fund 5
revenue shortfall, then the Governor is empowered and directed to take necessary actions 6
with respect to the Executive Branch budget units to balance the budget by such actions 7
conforming with the criteria expressed in this Part; and 8
(13) Within 15 days of the enactment of a General Fund Budget Reduction Plan, 9
the Secretary of each cabinet, the Commiss ioner of Education, or the head of each 10
agency, shall submit a report to the Interim Joint Committee on Appropriations and 11
Revenue detailing the plan for implementation of the reduction, including any personnel 12
actions, programmatic changes, or other measu res necessary to achieve the required 13
reduction. 14
PART VII 15
GENERAL FUND SURPLUS EXPENDITURE PLAN 16
(1) Notwithstanding KRS 48.130(7), 48.140(3), 48.700, and 48.705, there is 17
established a plan for the expenditure of General Fund surplus moneys pursuant to a 18
General Fund Surplus Expenditure Plan contained in this Part for fiscal years 2025 -2026, 19
2026-2027, and 2027 -2028. Pursuant to the enactment of the Surplus Expenditure Plan, 20
General Fund moneys made available for the General Fund Surplus Expenditure Plan 21
pursuant to Part III, General Provisions, Section 22. of this Act are appropriated to the 22
following: 23
(a) Expenditures without a sum -specific appropriation amount, known as 24
Necessary Government Expenses, as authorized in Part I of this Act; 25
(b) The entire remaining amount to the Budget Reserve Trust Fund; and 26
(c) No surplus moneys in any fiscal year shall be reserved for Necessary 27
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Government Expenses in a subsequent fiscal year. 1
(2) The Secretary of the Finance and Administration Cabinet shall determine, 2
within 30 days after the close of each fiscal year, based on the official financial records of 3
the Commonwealth, the amount of actual General Fund undesignated fund balance for 4
the General Fund Surplus Account that may be available for expenditure pursuant to t he 5
Plan in fiscal year 2026 -2027 and fiscal year 2027 -2028. The Secretary of the Finance 6
and Administration Cabinet shall certify the amount of actual General Fund undesignated 7
fund balance available for expenditure to the Legislative Research Commission. 8
PART VIII 9
ROAD FUND BUDGET REDUCTION PLAN 10
There is established a Road Fund Budget Reduction Plan for fiscal years 2025 -11
2026, 2026 -2027, and 2027 -2028. Notwithstanding KRS 48.130(1) and (3) relating to 12
statutory appropriation adjustments related to the revenue sharing of motor fuels taxes, in 13
the event of an actual or projected revenue shortfall in Road Fund revenue receipts of 14
$1,844,000,000 in fiscal year 2025 -2026, $1,836,000,000 in fiscal year 2026 -2027, and 15
$1,909,400,000 in fiscal year 2027 -2028, as mo dified by related Acts and actions of the 16
General Assembly in an extraordinary or regular session, the Governor shall implement 17
sufficient reductions as may be required to protect the highest possible level of service. 18
Within 15 days of the enactment of a Road Fund Budget Reduction Plan, the 19
Secretary of each cabinet or the head of each agency shall submit a report to the Interim 20
Joint Committee on Appropriations and Revenue detailing the plan for implementation of 21
the reduction, including any personnel act ions, programmatic changes, or other measures 22
necessary to achieve the required reduction. 23
PART IX 24
ROAD FUND SURPLUS EXPENDITURE PLAN 25
Notwithstanding KRS 48.110, 48.140, and 48.710, there is established a plan for the 26
expenditure of the Road Fund Surplus Account. All moneys in the Road Fund Surplus 27
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Account shall be appropriated to the State Construction Account within the Highways 1
budget unit and utilized to support projects in the 2026 -2028 Biennial Highway 2
Construction Program. 3
PART X 4
PHASE I TOBACCO SETTLEMENT 5
(1) General Purpose: This Part prescribes the policy implementing aspects of the 6
national settlement agreement between the toba cco industry and the collective states as 7
described in KRS 248.701 to 248.727. In furtherance of that agreement, the General 8
Assembly recognizes that the Commonwealth of Kentucky is a party to the Phase I 9
Master Settlement Agreement (MSA) between the Parti cipating Tobacco Manufacturers 10
and 46 Settling States which provides reimbursement to states for smoking -related 11
expenditures made over time. 12
(2) State's MSA Share: The Commonwealth’s share of the MSA is equal to 13
1.7611586 percent of the total settlement a mount. Payments under the MSA are made to 14
the states annually in April of each year. 15
(3) MSA Payment Amount Variables: The total settlement amount to be 16
distributed on each payment date is subject to change pursuant to several variables 17
provided in the MSA , including inflation adjustments, volume adjustments, previously 18
settled states adjustments, and the nonparticipating manufacturers adjustment. 19
(4) Distinct Identity of MSA Payment Deposits: The General Assembly has 20
determined that it shall be the policy of the Commonwealth that all Phase I Tobacco 21
Settlement payments shall be deposited to the credit of the General Fund and shall 22
maintain a distinct identity as Phase I Tobacco Settlement payments that shall not lapse to 23
the credit of the General Fund surpl us but shall continue forward from each fiscal year to 24
the next fiscal year to the extent that any balance is unexpended. 25
(5) MSA Payment Estimates and Adjustments: Based on the official estimates 26
of the Consensus Forecasting Group, the amount of MSA payme nts expected to be 27
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received in fiscal year 2026 -2027 is $82,800,000 and in fiscal year 2027 -2028 is 1
$77,400,000. It is recognized that payments to be received by the Commonwealth are 2
estimated and are subject to change. If MSA payments received are less th an the official 3
estimates, appropriation reductions shall be applied as follows: after exempting 4
appropriations for debt service, the Attorney General, and the Department of Revenue, 50 5
percent to the Agricultural Development Fund, 30 percent to the Early Childhood 6
Development Fund, and 20 percent to the Health Care Improvement Fund. If MSA 7
payments received exceed the official estimates, appropriation increases shall be applied 8
as follows: after exempting appropriations for debt service, the Attorney Gener al, and the 9
Department of Revenue, 50 percent to the Agricultural Development Fund, 30 percent to 10
the Early Childhood Development Fund, and 20 percent to the Health Care Improvement 11
Fund. 12
a. Lapse and Reallocation of Early Childhood Development Fund 13
Appropriations: Notwithstanding KRS 194A.055, 200.151, 248.654, and any statute to 14
the contrary, $6,500,000 in General Fund (Tobacco) settlement agreement funds 15
previously appropriated from the Early Childhood Development Fund to the General 16
Administration and Program Support budget unit within the Education and Labor Cabinet 17
for the benefit of the Early Childhood Advisory Council shall lapse to the Tobacco 18
Settlement Agreement Fund established in KRS 248.654. 19
b. State Enforcement: Notwithstanding KRS 248.654 and 248.703(4), a total of 20
$150,000 of the MSA payments in each fiscal year is appropriated to the Attorney 21
General for the state’s diligent enforcement of noncompliant nonparticipating 22
manufacturers. 23
c. State Enforcement: Notwithstanding KRS 248.654 and 248.703(4), a total of 24
$250,000 of the MSA payments in each fiscal year is appropriated to the Finance and 25
Administration Cabinet, Department of Revenue for the state's diligent enforcement of 26
noncompliant nonparticipating manufacturers. 27
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d. Debt Service: Notwithstanding KRS 248.654 and 248.703(4), $14,100,200 in 1
MSA payments in fiscal year 2026 -2027 and $13,880,900 in MSA payments in fiscal 2
year 2027 -2028 are appropriated to the Finance and Administration Cabinet, Debt 3
Service budget unit. 4
e. Agricultural Development Initiatives: Notwithstanding KRS 248.654 and 5
248.703(4), $38,086,500 in MSA payments in fiscal year 2026 -2027 and $35,197,600 in 6
MSA payments in fiscal year 2027 -2028 are appropriated to the Kentucky Agricultural 7
Development Fund to be used fo r agricultural development initiatives as specified in this 8
Part. 9
f. Early Childhood Development Initiatives: Notwithstanding KRS 248.654, 10
$21,018,100 in MSA payments and lapsed funds from previously appropriated MSA 11
payments in fiscal year 2026 -2027 and $19,999,700 in MSA payments and lapsed funds 12
from previously appropriated MSA payments in fiscal year 2027 -2028 are appropriated 13
to the Early Childhood Development Initiatives as specified in this Part. 14
g. Health Care Initiatives: Notwithstanding KRS 164.47 6, 248.654, and 15
304.17B-003(5), $13,570,200 in MSA payments and lapsed funds from previously 16
appropriated MSA payments in fiscal year 2026 -2027 and $10,046,800 in MSA 17
payments and lapsed funds from previously appropriated MSA payments in fiscal year 18
2027-2028 are appropriated to the Health Care Improvement Fund for health care 19
initiatives as specified in this Part. 20
A. STATE ENFORCEMENT 21
GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS 22
Notwithstanding KRS 248.654 and 248.703(4), appropriations for state enforcement 23
shall be as follows: 24
1. GENERAL GOVERNMENT 25
Budget Unit 2026-27 2027-28 26
a. Attorney General 150,000 150,000 27
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2. FINANCE AND ADMINISTRATION CABINET 1
Budget Unit 2026-27 2027-28 2
a. Revenue 250,000 250,000 3
B. DEBT SERVICE 4
GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS 5
Notwithstanding KRS 248.654 and 248.703(4), appropriations for debt service shall 6
be as follows: 7
1. FINANCE AND ADMINISTRATION CABINET 8
Budget Unit 2026-27 2027-28 9
a. Debt Service 14,100,200 13,880,900 10
(1) Debt Service: To the extent that revenues sufficient to support the required 11
debt service appropriations are received from the Tobacco Settlement Program, those 12
revenues shall be made available from those accounts to the appropriate account of the 13
General Fund. All necessary debt service amounts shall be appropriated from the General 14
Fund and shall be fully paid regardless of whether there is a sufficient amount available 15
to be transferred from tobacco -supported funding program accounts to other accounts of 16
the General Fund. 17
(2) Appropriation of Unexpended Tobacco Debt Service: Any unexpended 18
balance from the fiscal year 2026-2027 or fiscal year 2027-2028 General Fund (Tobacco) 19
debt service appropriation in the Finance and Administration Cabinet, Debt Servic e 20
budget unit, shall continue and be appropriated to the Department of Agriculture, 21
Kentucky Office of Agricultural Policy. 22
C. AGRICULTURAL DEVELOPMENT APPROPRIATIONS 23
GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS 24
Notwithstanding KRS 248.654 and 248.703(4 ), appropriations for Agricultural 25
Development shall be as follows: 26
1. DEPARTMENT OF AGRICULTURE 27
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Budget Unit 2026-27 2027-28 1
a. Agriculture 35,426,900 32,739,700 2
(1) Tobacco Settlement Funds - Allocations: Notwithstanding KRS 248.711(2), 3
and from the allocation provided therein, counties that are allocated in excess of $20,000 4
annually may provide up to four percent of the individual county allocation, not to exceed 5
$15,000 annually, to the county council in that county for administrative costs. 6
(2) Counties Account: Notwithstanding KRS 248.703(1), included in the above 7
General Fund (Tobacco) appropriation is $11,777,900 in fiscal year 2026 -2027 and 8
$10,884,600 in fiscal year 2027 -2028 for the counties account as specified in KRS 9
248.703(1)(a). 10
(3) State Account: Notwithstanding KRS 248.703(1), included in the above 11
General Fund (Tobacco) appropriation is $21,876,000 in fiscal year 2026 -2027 and 12
$20,216,500 in fiscal year 2027 -2028 for the state account as specified in KRS 13
248.703(1)(b). 14
(4) Farms to Foo d Banks Program: Included in the above General Fund 15
(Tobacco) appropriation is $886,500 in fiscal year 2026 -2027 and $819,300 in fiscal year 16
2027-2028 to support the Farms to Food Banks Program. The use of the moneys provided 17
by this appropriation shall be restricted to purchases of Kentucky -grown produce and 18
protein from Kentucky farmers who participate in the Farms to Food Banks Program. 19
(5) Kentucky Rural Mental Health, Suicide Prevention, and Farm Safety 20
Program: Included in the above General Fund (Toba cco) appropriation is $886,500 in 21
fiscal year 2026 -2027 and $819,300 in fiscal year 2027 -2028 to support the Kentucky 22
Rural Mental Health, Suicide Prevention, and Farm Safety Program known as the Raising 23
Hope Initiative. The Department of Agriculture shall enhance awareness of the National 24
Suicide Prevention Lifeline (988) in rural communities in Kentucky, improve access to 25
information on rural mental health issues and available treatment services, provide 26
outreach, and provide other necessary services to i mprove the mental health outcomes of 27
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rural communities in Kentucky. The Farm Safety and Rural Health Division, at its 1
discretion, may receive, accept, and solicit grants, contributions of money, property, 2
labor, or other things of value from any government al agency, individual, nonprofit 3
organization, or private business to be used for the Kentucky Rural Mental Health, 4
Suicide Prevention, and Farm Safety Program. The Department of Agriculture may 5
utilize up to $150,000 of the appropriation amount in each fi scal year for program 6
administration purposes. The Department of Agriculture shall coordinate with the Raising 7
Hope Initiative to take custody of and maintain any intellectual property assets that were 8
created or developed by any state agency in connection with the Raising Hope Initiative. 9
The Department of Agriculture’s Office of Agricultural Marketing shall submit a 10
comprehensive annual report to the Interim Joint Committee on Appropriations and 11
Revenue and the Tobacco Settlement Agreement Fund Oversight Committee no later 12
than November 1 of each fiscal year. At a minimum, the report shall include: 13
(a) An accounting of all expenditures by fund source; 14
(b) A detailed accounting of all administrative expenses; 15
(c) The total amount expended on grants, loans, and benefits; 16
(d) A detailed accounting of all expenses not otherwise classified; 17
(e) Identification of any unexpended funds and the reason why the funds were not 18
expended; and 19
(f) An explanation of how all expenditures align with program objectives. 20
The Division Director of the Farm Safety and Rural Health Division and the 21
Executive Director of the Kentucky Office of Agricultural Marketing shall provide a 22
program update to the Tobacco Settlement Agreement Fund Oversight Committee in 23
November of each fiscal year. 24
2. ENERGY AND ENVIRONMENT CABINET 25
Budget Unit 2026-27 2027-28 26
a. Natural Resources 2,659,600 2,457,900 27
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(1) Environmental Stewardship Program: Included in the above General Fund 1
(Tobacco) appropriation is $1,773,100 in fiscal year 2026 -2027 and $1,638,600 in fiscal 2
year 2027-2028 for the Environmental Stewardship Program. 3
(2) Conservation District Local Aid: Included in the above General Fund 4
(Tobacco) appropriation is $886,500 in fiscal year 2026 -2027 and $819,300 in fiscal year 5
2027-2028 for the Division of Conservation to provide direct aid to local conservation 6
districts. 7
TOTAL - AGRICULTURAL 38,086,500 35,197,600 8
APPROPRIATIONS 9
D. EARLY CHILDHOOD DEVELOPMENT 10
GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS 11
Notwithstanding KRS 248.654, appropriations for Early Childhood Development 12
shall be as follows: 13
1. GENERAL GOVERNMENT 14
Budget Unit 2026-27 2027-28 15
a. Auditor of Public Accounts 500,000 -0- 16
(1) Certified Child Care Services Report: Included in the above General Fund 17
(Tobacco) appropriation is $500,000 in fiscal year 2026 -2027 to study the applicable 18
statutes, administrative regulations, and agency policies and processes that directly 19
impact the opening and operation of licensed and certified child care services in the 20
Commonwealth. This appropriation is from the lapse and reallocation of Early Childhood 21
Development Fund appropriations. 22
2. EDUCATION AND LABOR CABINET 23
Budget Unit 2026-27 2027-28 24
a. General Administration and Program Support 1,063,800 983,200 25
(1) Early Childhood Development: Included in the above General Fund 26
(Tobacco) appropriation is $1,063,800 in fiscal year 2026 -2027 and $983,200 in fiscal 27
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year 2027-2028 for the Early Childhood Advisory Council. 1
3. CABINET FOR HEALTH AND FAMILY SERVICES 2
Budget Units 2026-27 2027-28 3
a. Community Based Services 10,195,200 9,421,900 4
(1) Early Childhood Development Program: Included in the above General 5
Fund (Tobacco) appropriation is $8,422,100 in fiscal year 2026 -2027 and $7,783,300 in 6
fiscal year 2027-2028 for the Early Childhood Development Program. 7
(2) Early Childhood Adoption and Foster Care Supports: Included in the 8
above General Fund (Tobacco) appropriation is $1,773,100 in fi scal year 2026-2027 and 9
$1,638,600 in fiscal year 2027 -2028 for the Early Childhood Adoption and Foster Care 10
Supports Program. 11
2026-27 2027-28 12
b. Public Health 7,606,600 7,029,500 13
(1) HANDS Program, Healthy Start, Early Childhood Mental Health, and 14
Early Childhood Oral Health: Included in the above General Fund (Tobacco) 15
appropriation is $5,301,500 in fiscal year 2026 -2027 and $4,899,400 in fiscal year 2027 -16
2028 for the Health Access Nurturing Development Services (HANDS) Program, 17
$620,600 in fiscal year 2026 -2027 and $573,500 in fiscal year 2027 -2028 for Healthy 18
Start initiatives, $620,600 in fiscal year 2026 -2027 and $573,500 in fiscal year 2027 -19
2028 for Early Childhood Mental Health, $620,600 in fiscal year 2026 -2027 for Early 20
Childhood Oral Healt h, and $443,300 in fiscal year 2026 -2027 and $983,100 in fiscal 21
year 2027-2028 for Lung Cancer Screening. 22
c. Behavioral Health, Developmental and 2026-27 2027-28 23
Intellectual Disabilities Services 1,152,500 1,065,100 24
(1) Substance Abuse Prevention an d Treatment: Included in the above 25
General Fund (Tobacco) appropriation is $1,152,500 in fiscal year 2026 -2027 and 26
$1,065,100 in fiscal year 2027 -2028 for substance abuse prevention and treatment for 27
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pregnant women with a history of substance abuse problems. 1
4. POSTSECONDARY EDUCATION 2
Budget Unit 2026-27 2027-28 3
a. University of Kentucky 500,000 1,500,000 4
(1) Kindergarten Readiness Program: Included in the above Gen eral Fund 5
(Tobacco) appropriation is $500,000 in fiscal year 2026 -2027 and $1,500,000 in fiscal 6
year 2027-2028 to establish the Kindergarten Readiness Performance -Based Child-Care 7
Incentive Pilot Program. This appropriation is from the lapse and reallocati on of Early 8
Childhood Development Fund appropriations. 9
TOTAL - EARLY CHILDHOOD 21,018,100 19,999,700 10
APPROPRIATIONS 11
E. HEALTH CARE IMPROVEMENT APPROPRIATIONS 12
GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS 13
Notwithstanding KRS 164.476, 248.654 and 304.17B -003(5), appropriations for 14
health care improvement shall be as follows: 15
1. CABINET FOR HEALTH AND FAMILY SERVICES 16
Budget Unit 2026-27 2027-28 17
a. Public Health 1,773,100 1,638,600 18
(1) Smoking Cessation Program: Included in the above General Fund 19
(Tobacco) appropriation is $1,773,100 in fiscal year 2026 -2027 and $1,638,600 in fiscal 20
year 2027-2028 for Smoking Cessation. 21
2. JUSTICE AND PUBLIC SAFETY CABINET 22
Budget Unit 2026-27 2027-28 23
a. Justice Administration 2,881,200 2,662,700 24
(1) Office of Drug Con trol Policy: Included in the above General Fund 25
(Tobacco) appropriation is $2,659,600 in fiscal year 2026 -2027 and $2,457,900 in fiscal 26
year 2027-2028 for the Office of Drug Control Policy. 27
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(2) Restorative Justice: Included in the above General Fund (Tobacco) 1
appropriation is $221,600 in fiscal year 2026-2027 and $204,800 in fiscal year 2027-2028 2
to support the Restorative Justice Program administered by the Volunteers of America. 3
3. POSTSECONDARY EDUCATION 4
Budget Units 2026-27 2027-28 5
a. Council on Postsecondary Education 6,165,900 5,745,500 6
(1) Cancer Research and Screening: Included in the above General Fund 7
(Tobacco) appropriation is $6,165,900 in fiscal year 2026 -2027 and $5,745,500 in fiscal 8
year 2027 -2028 for cancer research and screening to be shared equally between the 9
University of Kentucky and the University of Louisville. Of these amounts, $625,000 in 10
each fiscal year is from the lapse and reallocation of Early Childhood Development Fund 11
appropriations. 12
b. University of Louisville 2,750,000 -0- 13
(1) Cancer Research: Included in the above General Fund (Tobacco) 14
appropriation is $2,750,000 in fiscal year 2026 -2027 to fund cancer research at the 15
Brown Cancer Center. This appropriation is from the lapse an d reallocation of Early 16
Childhood Development Fund appropriations. 17
TOTAL - HEALTH CARE 13,570,200 10,046,800 18
TOTAL - PHASE I TOBACCO SETTLEMENT 19
FUNDING PROGRAM 87,175,000 79,525,000 20
PART XI 21
STATE/EXECUTIVE BRANCH BUDGET SUMMARY 22
OPERATING BUDGET 23
2025-26 2026-27 2027-28 24
General Fund (Tobacco) -0- 86,675,000 79,524,900 25
General Fund -0- 15,416,488,000 15,693,139,800 26
Restricted Funds 167,270,800 16,693,897,000 17,383,278,100 27
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HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
Federal Funds 405,900,000 24,307,745,100 24,118,660,800 1
Road Fund -0- 55,582,600 57,940,100 2
SUBTOTAL 573,170,800 56,560,387,700 57,332,543,700 3
CAPITAL PROJECTS BUDGET 4
2025-26 2026-27 2027-28 5
Restricted Funds -0- 20,064,946,000 89,901,000 6
Federal Funds -0- 770,334,000 50,915,000 7
Bond Funds -0- 1,033,161,000 387,474,000 8
Agency Bonds -0- 1,250,800,000 -0- 9
Investment Income -0- 183,324,000 105,633,000 10
Other Funds 350,000,000 9,427,800,000 200,000,000 11
SUBTOTAL 350,000,000 32,730,365,000 833,923,000 12
TOTAL - STATE/EXECUTIVE BUDGET 13
2025-26 2026-27 2027-28 14
General Fund (Tobacco) -0- 86,675,000 79,524,900 15
General Fund -0- 15,416,488,000 15,693,139,800 16
Restricted Funds 167,270,800 36,758,843,000 17,473,179,100 17
Federal Funds 405,900,000 25,078,079,100 24,169,575,800 18
Road Fund -0- 55,582,600 57,940,100 19
Bond Funds -0- 1,033,161,000 387,474,000 20
Agency Bonds -0- 1,250,800,000 -0- 21
Investment Income -0- 183,324,000 105,633,000 22
Other Funds 350,000,000 9,427,800,000 200,000,000 23
TOTAL FUNDS 923,170,800 89,290,752,700 58,166,466,700 24